Wednesday, January 16, 2008

Anyone Have an Extra $50 Billion Laying Around?

Since eBay still hasn't made their "Big" announcement, I'm just sitting around the office thinking up stuff.

I'm looking at eBay's share price hitting a new 52 week low yesterday and wondering why a company like KKR, or one of the other biggies, doesn't swoop in and do an LBO (Leveraged Buy Out) of eBay.

For $50 billion in borrowed money, they could buy eBay, Inc.; spin off PayPal as its own public company; sell Skype to Google, Microsoft or even Baidu and either keep eBay's Marketplace business private or sell it to Yahoo or Amazon (my vote would be Amazon).

The company is sitting on over $4.5 billion in cash and generating over $2 billion a year in new cash. This seems like a no-brainer to me. Sure, the Credit Business is a little weak right now but with eBay's balance sheet to work with this seems like a sweet deal.

Anyone want to lend me $50 Billion?

If eBay management is not going to do this on their own, perhaps someone should do it for them.
Just my 5 cents!

3 comments:

Anonymous said...

stupid question but is there anywhere on here i can write you a private email to ask a question, or are these comment posts the only way?

Randy Smythe said...

Sure send the question to:

rksmythe at yahoo you can figure out the rest.

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