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private equity
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private equity
launches
Skype 4.0 Beta: It's all about telemarketing
The acquisition of Skype has been something of an albatross around eBay's neck — what, exactly, does an auction site need voice-over-IP and chat software for? With the new release, it's starting to make a bit more sense. Not as a chat client for early-adopter technology fetishists, but as a telemarketing tool. Here's how! More »
nerdfight
Google forcing App Engine developers to use Checkout?
Developers who jumped on the Google App Engine bandwagon have gotten an unpleasant surprise. Those who create Web applications using Google's computing infrastructure have found that the Mountain View advertising broker is not-so-subtly asking them to use Google Checkout to accept payments and not rival online transaction processing PayPal, an eBay subsidiary. Valid PayPal domains "accidentally" got caught up in Google's anti-phishing efforts, according to Googler Marzia Niccolai. More »
nerdfight
Google's anti-eBay subterfuge exposed
eBay plans require its Australian buyers and sellers to complete all their transactions through its PayPal payments service. The only holdup? A 38-page, anonymous filing to an Australian regulatory agency, claiming the real purpose of eBay's rule change "is to substantially lessen competition in the Market for Online Payment Processing Services." The fighting-words filing isn't so anonymous anymore. An AuctionBytes reader discovered the 38-page PDF filing was created by Google. More »
poll
What should Max Levchin do with his forgotten $100,000?
Before PayPal and Slide founder Max Levchin moved from Illinois to Palo Alto in 1998, he'd started three companies and sold the last for $100,000 — not a tiny amount of money, especially for a young entrepreneur. But after selling PayPal to eBay for $1.54 billion, these days Levchin is worth around $100 million. Six figures no longer merit that much of his attention. It's such a paltry amount that in Once You're Lucky, Twice You're Good, Sarah Lacy reports Levchin actually forgot about the money until 2006. "In just four years," Lacy writes, "$100,000 would go from being unfathomable riches to pocket change." Levchin is no longer interested in the purchasing power of money, but we are. So let the young multi-millionaire know how he should spend that $100,000 in "pocket change" in our poll. More »
David Sacks is having an excellent Memorial Day weekend
David Sacks, the former COO of PayPal turned first Hollywood producer and now CEO of Geni.com, seems to be enjoying himself. Even if, we suspect, he's not following his own advice about Twitter and alcohol.
breakdowns
PayPal closes the border
When Peter Thiel launched PayPal a decade ago, he had a vision of a global payments mechanism which would accelerate the withering-away of the nation-state. And then he sold it to eBay. eBay's latest failure to transform the international monetary system is quite literal; for almost two weeks, PayPal has had a bug which prevents it from collecting cross-border payments for subscriptions — this while its new president, Scott Thompson, has been touring the globe. The error: a bit of code in a drop-down menu. Subscriptions are a small part of PayPal's business, though vital to the complaint-prone blogging class. Regardless, it's a trivial bug that should have taken minutes, not weeks, to fix; that eBay has not yet done so would seem to speak to a profound rot in its technical organization — which Thompson headed up as CTO before his promotion.
once you're lucky, twice you're good
P is for Parker, the Valley's bad boy
Sean Parker has had a hand in some of the Valley's biggest successes. His first company, Napster, took the world by storm, but didn't make Parker rich. His second, Plaxo, just sold to Comcast. And his third, Facebook — well, say no more. Except for the bit about him getting kicked out, according to Mark Zuckerberg's legal testimony, for a cocaine arrest. (Parker characterized the incident as "a misunderstanding.") That and more is covered in the 21 pages Sarah Lacy devotes to Parker in Once You're Lucky, Twice You're Good, new book about Web 2.0. The index page where Parker is listed: More »
once you're lucky, twice you're good
L is for Levchin, who never goes slow
Max Levchin, the cofounder of PayPal and the CEO of Slide, measures nearly everything, down to the optimum price to pay for an engagement ring. If he needs a metric for self-importance, Once You're Lucky, Twice You're Good, Sarah Lacy's new book about Web 2.0, provides one. He occupies 78 out of 294 pages, more than anyone else. Here are the index pages for "F" through "M": More »
once you're lucky, twice you're good
B is for Botha, who sold YouTube big
Few people outside Silicon Valley have heard of Roelof Botha. But the former CFO of PayPal is famous here. His two claims to fame: negotiating that company's $1.5 billion sale to eBay, and later, as a partner at Sequoia Capital, investing in YouTube and quickly flipping the startup to Google for $1.65 billion. Is it a coincidence that that figure is 10 percent higher than his PayPal score? Few insiders think so. Botha gets four pages in Sarah Lacy's Once You're Lucky, Twice You're Good — more than Google cofounder Sergey Brin. Other figures who appear on the second page of her Web 2.0 book's index: John Battelle, Ning CEO Gina Bianchini, Facebook board member Jim Breyer, blog blowhard Jason Calacanis, and YouTube cofounder Steve Chen, whom Botha made quite wealthy. More »
Everything but auctions boosts eBay's bottom line
Recently anointed eBay CEO John Donahoe thumped his chest over the auction giant's first-quarter earnings. He praised a "diverse portfolio of businesses" as revenues jumped 24 percent to $2.19 billion and earnings rose 22 percent to $459.7 million. The problem: Younger businesses like Skype and PayPal aren't as profitable as eBay's core e-commerce business, which is why profit margins dropped. [WSJ]
Recently anointed eBay CEO John Donahoe thumped his chest over the auction giant's first-quarter earnings. He praised a "diverse portfolio of businesses" as revenues jumped 24 percent to $2.19 billion and earnings rose 22 percent to $459.7 million. The problem: Younger businesses like Skype and PayPal aren't as profitable as eBay's core e-commerce business, which is why profit margins dropped. [WSJ]
antitrust
Australians question eBay's PayPal-only policy
Years ago, PayPal was an independent company which fought constantly with eBay to be allowed on the site as a way to settle accounts after an auction was won. Now, years after eBay bought PayPal, the payments service is elbowing out all manner of competition. In Australia, eBay is limiting purchases to either PayPal or cash on delivery — no checks or money orders allowed, let alone rival electronic payment methods. In the U.S., eBay was sued last year for tying PayPal too closely to its online marketplace. How soon they forget: PayPal is aiming to quash an economic freedom its founders, including noted libertarian Peter Thiel, fought for.
eBay, PayPal layoffs confirmed by CNN
Oh, look, Valleywag's tipsters came through — 125 laid off at eBay worldwide. [CNNMoney]
Oh, look, Valleywag's tipsters came through — 125 laid off at eBay worldwide. [CNNMoney]
rumormonger
Layoffs at eBay and PayPal?
In the last 24 hours, we've heard that eBay has laid off 40 members from its bloated middle-management ranks and that its PayPal subsidiary has let its entire branding department go. Has Wall Street already gotten word of these cutbacks? We all know how much the market loves "fat trimming," and EBAY is up nearly two points so far today. (Photo by AP/Tony Avelar)
explainer
Why PayPal finds your money of interest
eBay's PayPal division will start holding payments for up to three weeks for certain "high-risk transactions" next month. Some sellers are pissed, but it's totally legal. PayPal is not a bank. It is not insured by the FDIC — the government program which insures deposits should a bank go under. PayPal is a "deposit broker," meaning the company pools deposits from all its users and holds them in bank accounts under PayPal's name, collecting interest on the money — and deposit brokers are not federally regulated. More »
john donahoe
New eBay CEO: Search first step to fixing eBay
Whitman's out and the new guy in charge, John Donahoe, says step one to fixing eBay is fixing its internal search engine. "Our buyers tell us that we know you have unmatched selection, but we can't always find what we want," Donahoe told Bits. Unable to find what they want to buy using eBay's search, Donahoe's theory goes, these users go to Google instead. What Donahoe doesn't mention: eBay has been talking about improving its search for years.More »
e-commerce
Facebook wants your credit card
Facebook is looking for platform developers to test a payments system, an administrator announced on the Facebook Developers forum. Details are scant, but it's more likely than not built on the micropayments software Facebook developed for its virtual gifts. (Which, by the way, is a brilliant Trojan horse strategy: Charge people a token amount for something that costs you nothing, and get their credit-card numbers while you're at it.) The good news for the rest of us is that the new payment system might mean we'll see some Facebook apps that are meant to do something besides show us ads while we goof off.More »
great moments in pr
UK flack skewers big client eBay in press release
Like thousands of people around the world right now, Mark Jackson is peeved at eBay about some purchase gone sour. A Nintendo DS Lite, to be precise. Jackson was so peeved that he sent an email to several U.K. press outlets, copying eBay and demanding a response. This is only notable because Jackson is a high-ranking executive at Hill and Knowlton. And eBay does business with Hill and Knowlton all around the world — but substantially cut its budget in the last month. Here's Jackson's screed — and more about its curious timing.More »
