|Wed May 14 2014 14:18:46|
Should Google Buy eBay?
By: Julia Wilkinson
I have to admit, that question sounds crazy to me. And yet, the question is floating out there on various business sites such as MarketWatch and Bloomberg Businessweek. I think part of this is the foofaraw around China-based ecommerce giant Alibaba's impending IPO, with other headlines out there like "Alibaba Files IPO, Challenges Google and Amazon for Ad share."
In this Bloomberg Businessweek video, Baird analyst Colin Sebastian says people like Carl Icahn triggered the discussion, and the feeling is the "value of PayPal is locked inside eBay."
And while some say Google should be buying just PayPal (this is assuming eBay agrees to sell it), Sebastian says "a better option"...instead of splitting eBay and PayPal, "would be combining it with a larger, healthy Internet platform like Google, which also...we think needs ecommerce and payments."
Though he acknowledges it is "more of a thought exercise," he says his firm looked at companies that "need payments, need commerce" which include "Google, Facebook, and eventually Yahoo and Twitter as well," and they think Google has the resources to pull it off successfully.
Hmm. I don't know that Google buying eBay would be such a great idea. It wouldn't be the first time with a huge merger that 1+1 does not necessarily equal 2. Ideally it equals 3, but sometimes it just stays at one. The other thing is, would there be no anti-trust issues with such a large merger? I'm sure some of you business brains out there could answer that better than I.
To me it feels a bit like too many big companies commingling into one big blob, which is reminiscent of the utilitarian but ultimately, well, gross concoction of Soylent Green.
You laugh? There's really a product out there now called "Soylent," hailed by The New Yorker as "The End of Food." (Who wants food to end?). But I digress.
What do you think of the idea of a Google - eBay merger? Would one and one make two? Would you dare eat Soylent for two weeks? Post a comment here!
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