eBay Inc (NASDAQ:EBAY) announced that it is selling its eBay Enterprise division for $925 million, much less $2.4 billion it paid to buy the unit four years ago. At the same time, the company also confirmed splitting off Pay Pal following that the e-commerce firm re-emerges as a stand-alone entity. After the recent split off, the company will need to find more effective measures to deal with the ever-growing competition with its peers including Amazon.com, Inc.(NASDAQ:AMZN).
Yesterday eBay confirmed that it is selling its enterprise services business unit, which specializes in managing and developing e-commerce sites for retailers. These are the clients that are looking to enter into the business world on the Internet. The unit is sold to a consortium comprising Sterling Partners, Longview Asset Management, Innotrac, and undisclosed firms owned by Permira.
The quarterly performance
eBay has faced numerous problems in past few years that have resulted in growth challenges, like the Google Inc (NASDAQ:GOOGL) demotion. After the recent measures, the point is whether the company will be able to recover or find new measures to get new users. On Thursday, the company reported that revenue for 2Q2015 surged to $4.4 billion, with strength across both eBay and PayPal. The revenue excludes revenue of eBay Enterprise unit that amounted to $0.3 billion in the quarter. The unit is now mentioned as discontinued operations.
The overall performance
eBay payments and commerce ecosystems continued to expand their services in global commerce, as gross merchandise volume growth measured on an “FX” neutral basis surged 1 point to 6% compared to 2Q2014. On a YOY basis, foreign currency movements adversely affected the revenue growth rate of company’s Marketplaces business by as much as eight points. Also, weaker currencies in other markets resulted in a decline in demand for products in export-oriented markets including the U.S.
The management speaks
Devin Wenig, the President, said that he is delighted by the state of eBay’s business and the progress achieved in the quarter. As company rejoices its 20th anniversary in 2015, the team is making rapid changes to support the future growth.