Tech stocks mixed
Shares in five companies related to Alibaba end mixed on its debut trading day. Alibaba part-owner Yahoo closes down 3% after gaining 20% over the previous few months while SoftBank Corp., another major Alibaba shareholder, loses 1%. U.S. e-commerce rival Amazon ends 2% higher after an analyst raises his price target on the stock, EBay falls 0.5% and JD.com closes down 4%.
‘Bill Me Later’ becomes ‘PayPal Credit’
Ebay changes the name of the PayPal payment service from Bill Me Later to Paypal Credit. The name change is part of PayPal’s image transition to one that is more in line with a banking institution. Ebay purchased PayPal Credit over year ago for approximately $1 billion. PayPal Credit offers consumers instant loans to purchase items on specific websites, including Walmart.com and Apple.com. The loans have interest rates of up to 20%. Steve Allocca, PayPal vice president of global credit, says PayPal is considering ways to extend credit offline such as auto loans.
Partners with Sotheby’s
Ebay and Sotheby’s partner to stream live auctions. In a joint press release the companies say:
eBay in the near future will be launching a newly-designed experience on its site, tailored for collectors of rare, unique and premium art and collectibles as well as first time buyers.
Sotheby’s CEO Bruno Vinciguerra says the new venture will:
make our sales more accessible to the broadest possible audience around the world.
At the onset, live auctions will stream from Sotheby’s in New York, and this will allow for “real-time bidding from anywhere around the world.” Although no firm start date for the live streaming has been set, it will take place late 2014 or early 2105.
Ebay sells Skype at a value of $2.75 billion to Silver Lake Partners, which includes Joltid, the Canada Pension Plan Investment Board, and Andreessen Horowitz. SLP acquires a 70 percent stake in the Internet communication company. Andreesen notes:
Skype is gigantic and yet still a relatively small percentage of international call volume. This is, and ought to be, one of the most important companies on the Internet.
Joins eBay board
Andreessen joins eBay’s board of directors while working on the Ning social networking platform. eBay President/CEO John Donahoe says:
Marc is a true visionary whose experience will be invaluable to eBay. We look forward to learning from Marc’s insights and expertise as we drive further innovation on our platform, invest in growth opportunities, and develop technology that will further benefit our customers, build powerful communities and enhance e-commerce.