Tag Archives: John Donahoe
Dan Loeb Sends A Letter Again To Have Scott Thompson CEO Fired
Third Point founder and Yahoo! activist shareholder Daniel Loeb has released a new letter about the resume controversy surrounding Scott Thompson. In the letter, he requested the firing of Scott Thompson. “It seems farcical to us that the Board will most likely spend more time deliberating over whether Mr. Thompson should be fired than it did properly vetting whether he should have been hired,” states the letter. “The necessary investigation into whether certain senior executives and Board Members knew of Mr. Thompson’s deceptions before hiring him should not delay decisive action over his ethical breaches.”
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Categories Dan Loeb, John Donahoe, Patti Hart, Ross Levinsohn, Scott Thompson, Third Point, Tim Morse, Yahoo!
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PayPal Mobile VP David Marcus Promoted To President
Former PayPal president Scott Thompson has left the company to become the CEO of Yahoo! This left an empty spot for eBay to fill at PayPal. That spot has been filled by David Marcus, the former CEO of Zong and the former PayPal Mobile VP. PayPal acquired Zong for $240 million.
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Categories David Marcus, eBay, John Donahoe, PayPal, Scott Thompson, Zong
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PayPal Announces Square Competitor “PayPal Here”
PayPal has announced a service that acts as a digital wallet system for consumers. PayPal president and CEO John Donahoe announced the dongle that can be used for accepting credit cards. This service competes directly against Square. The service is called “PayPal Here.” The credit card reader appears to be a blue triangle that snaps on top of the iPhone through a headphone jack. The device has a wing on a hinge to remain stable on top of the phone.
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Categories John Donahoe, PayPal
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eBay Revenues Grow 16% To $2.5 Billion As Fueled By PayPal
eBay Inc. (NASDAQ:EBAY) has reported their first quarter financial results today. Their revenues have increased 16% to $2.5 billion compared to the same period last year. And their profits have soared by 20% to $475.9 million. eBay met the expectations of analysts for this period.
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Categories eBay, John Donahoe, PayPal
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eBay Expects PayPal’s Revenues To Double By 2013
eBay Inc. (NASDAQ:EBAY) is expecting revenue for PayPal to double by 2013. “We’re at an inflection point where tech-driven innovation is broadly shaping e-commerce and shifting consumer behavior. This shift is creating new global opportunities for our company,” stated eBay CEO John Donahoe. “We are driving the next generation of e-commerce.” PayPal’s mobile transactions are estimated to double to $2 billion in total payment volume in 2011. PayPal is used by 59% of the top 100 online merchants. Paypal’s revenue is expected to hit about $6-$7 billion by 2013. [Reuters]
Categories eBay, John Donahoe, PayPal
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eBay Is Preparing To Redesign By Holiday Shopping Season
eBay Inc. (NASDAQ:EBAY) is preparing to redesign their website in preparation for the holiday shopping season. This will be eBay’s first major homepage design in close to 4 years.
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Categories Amazon, Amazon.com, eBay, John Donahoe
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eBay Marketplaces President Lorrie Norrington Resigning
eBay Marketplaces President Lorrie Norrington is resigning from the company for “personal reasons.” Until a replacement is found, the Marketplaces management team will report to eBay CEO John Donahoe. Norrington has been President of eBay Marketplaces since July 2008.
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Categories eBay, eBay Marketplaces, John Donahoe, Lorrie Norrington
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BREAKING: eBay Sells 65% Stake In Skype Based On $2.75 Billion Valuation
About four years after eBay acquired Skype for about $4.1 billion, $2.6 billion of which was upfront cash, the company has decided to sell a big chunk of it it off to several investors. Skype was valuated at $2.75 billion when eBay decided to sell 65% worth of the company to investors such as Silver Lake, Index Ventures, Andreessen Horowitz, and the Canada Pension Plan Investment Board.
eBay will receive about $1.9 billion cash when the deal is complete along with a $125 million note in principal from the buyers. eBay itself will retain 35% in Skype. The transaction is expected to be complete by the fourt quarter of this year.
“This is a great deal, unlocking both immediate and long-term value for eBay and tremendous potential for Skype,” stated eBay President and CEO John Donahoe in a press release. “We’ve acted decisively on a deal that delivers a high valuation, gives us significant cash up-front and lets us retain a meaningful minority stake with talented partners. Skype is a strong standalone business, but it does not have synergies with our e-commerce and online payments businesses. As a separate company, we believe that Skype will have the focus required to compete effectively in online voice and video communications and accelerate its growth momentum.”
Back in April, eBay said that they were planning on spinning Skype into its own brand and preparing a separate IPO for the VoIP company. Now it is assumed these investors that took control of Skype will work together in preparing the IPO. This gives eBay the ability to focus all of their energy on their own company and on PayPal.
How much money does Skype make?
In 2008, Skype itself made $551 million in revenue which was a 44% increase from the year before. eBay’s total revenues for 2008 was $8.5 billion.
How many users does Skype have?
By EOY 2008, Skype had about 405 million users which was a 47% increase from the year before.
Categories Andreessen Horowitz, Ben Horowitz, eBay, Index Ventures, John Donahoe, Marc Andreessen, Silver Lake, Skype
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John Donahoe Says “PayPal Is A Business That Will Be Bigger Than eBay”
“PayPal is a business that will be bigger than eBay,” stated eBay CEO John Donahoe at the Fortune Brainstorm: Tech Conference earlier this week. I give Donahoe credit for being honest because I believe eBay has passed its peak and now there are tons of competitors out there. And PayPal is a rapidly growing business making billions in revenue for eBay.
PayPal made about $1.8 billion in revenue in 2007 while eBay’s total revenues were $7.7 billion. This means PayPal made about 23.3% of eBay’s 2007 revenues. Over the last year eBay made about $8.5 billion in revenues and I believe that PayPal made over 25% of that revenue.
PayPal also recently opened up APIs to developers. Donahoe said that the company is not far off from the day that a restaurant will beam a bill to your mobile phone and gives the consumer the ability to pay using PayPal.
Categories eBay, John Donahoe, PayPal
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eBay To Spin Off Skype Through An IPO In 2010
Despite an offer that KKR, Warburg, Providence, Elevation Partners, and the original founders of Skype proposed, eBay Inc. (NASDAQ:EBAY) decided to keep the VoIP company they acquired for $2.6 billion about four years ago. Instead eBay will spin off Skype as its own company in 2010 and will file it to go public.
“Skype is a great stand-alone business with strong fundamentals and accelerating momentum,” stated eBay President and CEO, John Donahoe. “But it’s clear that Skype has limited synergies with eBay and PayPal. We believe operating Skype as a stand-alone publicly traded company is the best path for maximizing its potential. This will give Skype the focus and resources required to continue its growth and effectively compete in online voice and video communications. In addition, separating Skype will allow eBay to focus entirely on our two core growth engines—e-commerce and online payments—and deliver long-term value to our stockholders.”
Below are some of Skype’s stats:
- 2008 revenue: $551 million, 2007 revenue: roughly $382 million
- Number of Skype users: 405 million by the end of 2008
- 2011 expected revenue: $1 billion
- Josh Silverman will now be the head of Skype.
Recently Skype created an iPhone application and millions of people were downloading it as soon as it came out. Over 1 million people downloaded it within the first 36 hours.
[via eBay press release]
Categories eBay, John Donahoe, Josh Silverman, Skype
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