eBay buys Bill Me Later, lays off 1,000
Online auctioneer, soon reporting third-quarter results, also announces plans to acquire Danish classifieds specialists Den Bla Avis and BilBasen for approximately $390 million in cash.
eBay will lay off about 10 percent of its workforce, the company announced Monday, and said third-quarter results will come in at the low end of expectations.
The company also announced plans to acquire online payments business Bill Me Later for $820 million in cash and approximately $125 million in outstanding options, as well as Danish classifieds specialist Den Bla Avis and vehicle site BilBasen for approximately $390 million in cash.
eBay said its workforce reduction, which cuts about 1,000 jobs, will result in a pretax restructuring charge of between $70 million and $80 million, which will be taken in the fourth quarter of 2008, eBay said. The online retailer will also let go several hundred temporary workers and reduce the number of open positions.
The company, scheduled to report third-quarter results on October 15, said on Monday that it expects to hit the low end of its revenue guidance, and exceed GAAP and non-GAAP earnings per share. eBay said in July that it expected net revenues of between $2.1 billion and $2.15 billion for the third quarter, with GAAP earnings per diluted share of between 30 cents and 32 cents per share, and non-GAAP earnings per diluted share of between 39 cents and 41 cents per share.