eBay...Paypal ... Skype

[cumos55]

It is time read about the history of eBay  in relation to Paypal,  and Skype.

And now it will be  the new... Managed Payments option ...

The links are

Paypal

https://en.wikipedia.org/wiki/PayPal

Skype

https://en.wikipedia.org/wiki/Skype

eBay

https://en.wikipedia.org/wiki/EBay

This is history of the relationship eBay had with Paypal and Skype....  and now we will have Managed Payments.....

[marnotom!]

Big difference here is that eBay doesn’t own Adyen and likely never will, given that Adyen’s shares are worth roughly twenty times those of eBay.

[cumos55]

Adyen.....

https://en.wikipedia.org/wiki/Adyen

[recped]

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@marnotom! wrote:
Big difference here is that eBay doesn’t own Adyen and likely never will, given that Adyen’s shares are worth roughly twenty times those of eBay.

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Share price means nothing!

The market cap of Adyen is almost the same as eBay, both at about $30b, on the other hand the p/e ratio of Adyen is over 140 while eBay is about 16. That said Adyen is a growth stock and eBay certainly isn't.

FYI - I missed this tidbit, a couple of months ago Subway appointed Adyen as their global payment processor.

[kawartha-ephemera]

It's very likely that ebay negotiated some sort of earn-in agreement with Adyen whereby as ebay delivers agreed upon payment volumes they receive some small degree of ownership in Ayden ... wonder how much Ayden had to give to land ebay.

[marnotom!]

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@kawartha-ephemera wrote:

It's very likely that ebay negotiated some sort of earn-in agreement with Adyen whereby as ebay delivers agreed upon payment volumes they receive some small degree of ownership in Ayden ... wonder how much Ayden had to give to land ebay.

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Adyen was privately held when the Managed Payments deal was negotiated and concluded, for what it's worth.  Its stock is now public but there doesn't seem to be any indication that any one entity has a significant stake in it:

https://simplywall.st/news/could-the-adyen-n-v-amsadyen-ownership-structure-tell-us-something-useful...

[kawartha-ephemera]

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@marnotom! wrote:

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@kawartha-ephemera wrote:

It's very likely that ebay negotiated some sort of earn-in agreement with Adyen whereby as ebay delivers agreed upon payment volumes they receive some small degree of ownership in Ayden ... wonder how much Ayden had to give to land ebay.

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Adyen was privately held when the Managed Payments deal was negotiated and concluded, for what it's worth.  Its stock is now public but there doesn't seem to be any indication that any one entity has a significant stake in it:

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I took a few minutes to see what info was out in the wild on this subject, Corporations rarely release this sort of news, especially those about to go public.

As reported by Reuters ebay managed to negotiate a deal sweetener in the form of Adyen warrants that if exercised could represent up to a 5%  ownership interest. In this case at some future date, maybe on the 2nd, 3rd, 4th and 5th anniversary of the deal coming into effect ebay may exchange each warrant plus an agreed upon amount of cash for one Adyen share. Typically, the warrant exchange price is considerably lower than the value of the share received. In effect the issuing corporation issues shares from treasury at a discount, quite often a sizeable discount if the issuer has experienced a period of outsized financial performance. Ebay may choose to simply let the warrants expire if the future Adyen share price is unfavourable.

If the ebay warrant deal was considered "material" the details would have been disclosed in the Adyen IPO prospectus. I'm not that curious so I've not investigated further.

JUNE 4, 2018 / 7:47 AM / 2 YEARS AGO

eBay could end up with 5 percent stake in Dutch fintech firm Adyen: report

AMSTERDAM (Reuters) - eBay Inc could end up with a stake of up to 5 percent in Adyen as part of a deal the two companies agreed in January that will see the Dutch fintech company become eBay’s primary payment processor, a Dutch newspaper reported on Monday.

“Warrants will be given to eBay in four tranches, on the condition that the auction site routes a substantial portion of its payments via Adyen,” the Het Financieele Dagblad newspaper reported, citing sources familiar with the matter.

A spokesman for Adyen declined to comment on the report. eBay could not immediately be reached for comment.

Adyen this month plans to sell a 15 percent stake in an initial public offering in Amsterdam expected to value the company at $7 billion to $11 billion.

Shares in eBay rose by 15 percent on Feb. 1 after it announced the Adyen deal, which it said would add $500 million to operating profit when it goes into effect in mid-2020. Shares in eBay’s former in-house service PayPal, which eBay spun off three years ago, fell 8 percent.

Adyen is due to publish its prospectus on Tuesday, with listing to follow at mid-month.