Why eBay fees keep going up!! Answer!!

[Schatzy]

SAN JOSE, Calif. - EBay Inc. said on Monday it will cut about 1,000 employees, reducing its work force by about 10 percent.

 

The online auction site also said it will get rid of several hundred temporary workers and reduce open positions.

 

EBay said the reductions would streamline its organization. The company said it expects restructuring charges of about $70 million to $80 million, mostly in the fourth quarter.

 

EBay also said its third-quarter earnings would be higher than it predicted in July, although revenue will be at the low end of its expectation. It is scheduled to announce third-quarter results on Oct. 15.

 

On July 16 eBay said it expected third-quarter earnings between 30 cents and 32 cents per share, and revenue between $2.1 billion and $2.15 billion.

 

EBay also said it will buy online payments business Bill Me Later for $820 million in cash and $125 million in outstanding options. The company also said it will buy Danish classifieds site dba.dk and vehicles site bilbasen.dk for $390 million in cash.

 

I guess eBay has some extra cash on there hands!!

 

[ant]

they arent paying. the people using ebay are paying.

 

 

[gmarguli]

I just can't understand how all those wonderful changes at eBay haven't been working out well for them?

 

Who would have guessed that by eBay catering 100% to their customer (the buyers who provide zero revenue) and ignoring those unneeded complainers (the sellers who actually pay the bills), wouldn't work out well for eBay?

 

 

Looks like about $55 Billion in market capitalization has been wiped off over the past couple years. Awesome results John Donahoe, Chief Exec. Officer, Pres. Definitely worth the $2,500,000 a year salary!

 

The good news is that the company is getting cheap enough that maybe Microsoft or Google might try to take them over.

[BillJones]

Awesome results John Donahoe, Chief Exec. Officer, Pres. Definitely worth the $2,500,000 a year salary!

 

John looks like real executive material to me. Like his counterparts at Leman Brothers and some other major financial institutions he has discovered some new and novel ways to drive his company into the ground.

 

Congrats John! You’re in the running for the Enron Memorial senior management award. Through your superior leadership you have developed now management tools to drive customers away and turn a deaf ear to all of those who tried to warn you.

 

Here’s you trophy!

[MikeInFL]

The good news is that the company is getting cheap enough that maybe Microsoft or Google might try to take them over.

 

With a market cap of roughly $23B and a P/E of over 45, eBay is anything but cheap -- and recent news tends to confirm that their stock continues to be overpriced (and was REALLY overpriced in 2000). I wouldn't be long in eBay, but I don't think their stock is priced right for a takeover -- perhaps if it's cut in half (and the P/E closer to 20 or 25), as nobody in their right mind would pay 45 times earnings for eBay.

 

In short, companies with P/Es in the mid 40's shouldn't be missing revenue/earnings expectations, as one has to wonder how long their revenues/earnigs can continue to grow and support such an inflated stock price.

 

Respectfully submitted as MHO...Mike

[Schatzy]

Awesome results John Donahoe, Chief Exec. Officer, Pres. Definitely worth the $2,500,000 a year salary!

 

John looks like real executive material to me. Like his counterparts at Leman Brothers and some other major financial institutions he has discovered some new and novel ways to drive his company into the ground.

 

Congrats John! You’re in the running for the Enron Memorial senior management award. Through your superior leadership you have developed now management tools to drive customers away and turn a deaf ear to all of those who tried to warn you.

 

Here’s you trophy!

 

 

[font:Comic Sans MS]eBay[/font] <---- John Donahoe

[Oldtrader3]

Actually, I think that John Donahoe should get the Richard Fuld, Capitalism Award. Mr. Richard Fuld managed to pay himself and his Lehman-Directors $20 million severance as his corporate ship was sinking last week and my son-in-law and many others lost their jobs.

[just-john]

The way the market going spending 1.335 billion seems foolish today.Everything may be on sale in a week or two a tbetter prices

[Houston Investor]

Yes - I think ebay has made a major blunder catering to buyers who pay no buyers fees. The stupid new FB rules are an insult to sellers who are paying customers. Then now higher sellers fees? Anything I sell on the Bay I have to markup it up 15% just to break even.

 

Its like a restaurant bending over backwards for newbies and giving their paying regular customers the cold shoulder. Disgusting!

 

No wonder ebay stock has taken a nose dive. Many guys I have talked to on the bourse have cut their ebay listings 60% - "hey I don't want to fool with them unless its $100 or more......"

 

I think eventually ebay will be acquired by someone who really understands how business really works or else snuffed out by a competitor who does.

[cpm9ball]

I guess their next step will be to farm all of their customer service to India, and we'll get to talk to people who sound like they have marbles in their mouth. Microsoft did it, and it works great because the customers give up after asking the CS Rep to repeat what they said four or five times and hang up in frustration.

 

Chris

 

PS. I'm not a seller on eBay, but I hope they lose their , BIG TIME!

[Boom]

Ebay is and has been in a bad way for quite some time.

[BillJones]

Actually, I think that John Donahoe should get the Richard Fuld, Capitalism Award. Mr. Richard Fuld managed to pay himself and his Lehman-Directors $20 million severance as his corporate ship was sinking last week and my son-in-law and many others lost their jobs.

 

If the Lehman management really did this, I would think that the stockholders would have cause for a lawsuit. I'm not surprised though. The senior management of the company for which I once worked, sold off virtually all of the company's tangible assets, paid themselves salaries that even the Wall Street Journal noted were excessive and then sold off the company leaving the employees with shattered careers.

 

So much for the ethics of many of those in senior position at American companies.

 

[Oldtrader3]

They did it and Richard Fuld looked like an i*d*i*o*t scowling with disbelief and refusing to answer questions or growling out unbelievably stupid answers during the Senate Hearings yesterday as Henry Waxman grilled him about his $250 million compensation just in this decade. I hope that Fuld gets the special gray suit that is issued at Leavenworth.

[MarkFeld]

They did it and Richard Fuld looked like an i*d*i*o*t scowling with disbelief and refusing to answer questions or growling out unbelievably stupid answers during the Senate Hearings yesterday as Henry Waxman grilled him about his $250 million compensation just in this decade. I hope that Fuld gets the special gray suit that is issued at Leavenworth.

As I watched Fuld say that he accepted "full responsibility" for what happened, while at the same time dodge questions about the fairness of his pay, etc., I wished that I could have been there and asked him one question....

 

"Mr. Fuld, you claim that you accept full responsibility for what happened - please explain to us precisely what that means, seeing as how you haven't returned any of your quarter billion dollar compensation or offered to do so". OK, maybe two questions Are you going to get jobs for those who are out of work and/or reimburse the stockholders who lost money and/or reimburse the taxpayers? "Full responsibility" means "no responsibility".

[Oldtrader3]

Wait and watch as Ebay outsources those customer service, temp jobs to India. Raise fees higher as earnings decline, and blames it's customers for deserting them as their earnings decline. Senior management is never culpable or fallible in corporate failure. It is usually either the employee's or customer's fault, never theirs.