Asked AI about the Ebay and Etsy merger gossip...

[brettjet38]

I had heard some chatter in the grapevine so I decided to ask AI clairfy...

Q - Will ebay merge with etsy?

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While there's no confirmed merger, Piper Sandler analysts have suggested that an eBay and Etsy merger could be a "compelling" combination, leveraging eBay's buyer network and Etsy's unique platform to create a stronger e-commerce competitor. 

Here's a breakdown of the situation: 

• The Proposal:

  Piper Sandler, an investment bank, has proposed a merger between eBay and Etsy, arguing that it could address Etsy's growth challenges and create a formidable competitor in the e-commerce space.
• Potential Benefits:

  • Leveraging eBay's Network: A merger would allow Etsy to tap into eBay's extensive buyer network and data capabilities.
  • Enhanced Competition: The combined entity could challenge Amazon's dominance in the e-commerce market.
  • Economies of Scale: The merger could lead to cost savings and operational efficiencies.
• Distinct Business Models:

  • Etsy: Focuses on handmade, vintage, and craft-oriented goods.
  • eBay: Operates a broader marketplace with a wider range of consumer categories.
• Analyst Perspective:

  Piper Sandler acknowledges that a merger is unlikely in the near term, but suggests that Etsy might struggle to return to growth on a standalone basis.
• Financial Projections:

  Piper Sandler theorizes that an all-stock deal could value the combined entity at $85 per share and enhance earnings by $0.78 a share by 2026.
• Etsy's Performance:

  Etsy's stock has been lagging for three years, and gross merchandise sales declines have been sharpening.
• eBay's Performance:

  eBay has been contending with shrinking market share and increasing competition.
• Etsy and eBay's history

  Etsy launched in 2005 and went public in 2015, while eBay's roots date back to 1995.

[mrdutch1001]

speculation makes for great gossip.

I'd expect Etsy sellers to be in that "the sky is falling, the sky is falling" mode, meanwhile eBay sellers may just say "ho-hum... more of the same, more competition,ho-hum, ... will I have to lower my prices again...ho-hum...."

[brettjet38]

AI "Gossip" but behind every rumour is a truth...

Ho Hum, Ho Hum...

[fallsavenue]

Rubbish. eBay has more traffic and more sellers, why would they pay for what it already has? And, if Etsy goes up in smoke, where do you think traffic and sellers will go? 

[mrdutch1001]

agreed!

Many sellers list on both sites and for various reasons... but no matter, either way a pipe dream is still a pipe dream...speculation is still speculation and reality is the world we live in, not speculation, not a dream world...

[brettjet38]

https://www.msn.com/en-us/money/companies/m-a-musings-the-compelling-math-of-a-combination-of-etsy-a...

M&A musings: The compelling math of a combination of Etsy and eBay is floated by Piper Sandler

Piper Sandler broke down the merits of a merger between Etsy (NASDAQ:ETSY) and eBay (NASDAQ:EBAY), noting M&A could be an elegant solution for growth woes.

Analyst Anna Andreeva and her team said Etsy (NASDAQ:ETSY) is a unique platform that needs frequency, data, and scale. It was noted that eBay (NASDAQ:EBAY) has all three and is invested in AI. 

"With EBAY's scale, if ETSY grew, value would likely be untapped. Given EBAY's 134M active buyers, we estimate a pro forma buyer base would be ~174MM, or ~60% of the AMZN buyer base," wrote Andreeva.

An ETSY-EBAY combination is seen bringing scale to the table and opportunities for synergies due to the strong seller overlap. Accretion of $0.78 per share is forecast for 2026 if a deal were to be struck.

While the likelihood of an outright transaction was called relatively low, after crunching the numbers, Piper Sandler sees an all-stock transaction between the two online retailers leading to a combined pro forma eBay (NASDAQ:EBAY) being worth $85 per share.

Shares of Etsy (NASDAQ:ETSY) were up 1.4% in premarket trading to $47.58 vs. the 52-week range of $43.43 to $71.72. eBay (EBAY) traded flat at $66.80 vs. the 52-week range of $48.53 to $71.61. The Seeking Alpha Quant Rating on both stocks is Hold.

https://finance.yahoo.com/news/piper-sandler-proposes-ebay-etsy-182147456.html

Piper Sandler Proposes eBay and Etsy Tie-Up to Compete With Amazon

Piper Sandler is proposing a potential merger between e-commerce players eBay (NASDAQ:EBAY) and Etsy (NASDAQ:ETSY), citing complementary strengths that could address growth challenges and create a stronger rival in the space.

In a new report, the investment bank said combining eBay's 134 million active buyers with Etsy's niche marketplace could help the companies scale and compete more effectivelyreaching nearly 60% of Amazon's buyer base.