Acquisitions

EBay, the world known online auction center, published a financial report on Wednesday and revealed, that in third-quarter of 2007 lost about $ 1 billion. This unpleasant situation was caused by charges to its Skype telecommunications division. EBay acquired Skype in September 2005 for $ 2.6 billion in cash and stock. But nothing is lost for the company. If they count the revenue without Skype, they earned $ 563.8 million, what makes 41 cents per share. That's 53% more than last year in this time. Anyway, although they lost $ 936 million, their revenue was still more than high. From July to September eBay has made record revenue of $ 1.89 billion. That's 30 % more than last year this time. But the loss is still there, and that's no success for them. In comparison, in the last quarter eBay earned about $ 280 million. This quarter was the first time since 1999, when the company ended up with a loss. EBay will now write-down $ 900 million in the value of Skype. They overestimated the acquisition and now it's time to repair that. The write-down has never occurred in history of the company. The executives of eBay are disappointed, but state that their acts in 2005 were right and they wouldn't change them if they had a chance. In its 12 year history is EBay is more successful than ever. And as long they will continue to sell cars for 50 pence, towns, single cornflakes or Britney Spears hair she shaved, they don't have to worry about their earnings. They will be only higher and higher.

related story: http://news.yahoo.com/s/ap/20071017/ap_on_hi_te/earns_ebay;_ylt=AtxcDtG7NXmlE_Rslm5gbPOs0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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