Google-eBay merger suggested as alternative to PayPal spinoff

By | March 17, 2014

Scalper1 News

Forget breaking up eBay (EBAY) and PayPal. Google (GOOG) should acquire them both in a merger to create an Internet colossus, Baird Equity Research analyst Colin Sebastian suggested Monday. E-commerce website eBay (EBAY) is under pressure from activist investor Carl Icahn to spin off its electronic payment service PayPal. EBay executives have resisted Icahn’s calls for a breakup designed to unlock shareholder value. In a report Monday, Sebastian said a merger of Google  (GOOG) and eBay would be a “best of both worlds” opportunity. A Google-eBay combination is a “potentially more attractive option (that) is missing from the discussion.” A merger would unlock value for eBay shareholders and help solve two of Google’s competitive shortcomings: payments and e-commerce, Sebastian said. Google Wallet and Google Checkout are payments and e-com operations, respectively, for Google. Scalper1 News

Scalper1 News