eBay In Talks To Acquire Cybersource?

February 12th, 2008 • Related • Filed Under

eBay In Talks To Acquire Cybersource?Frankly, one of the major issues surrounding eBay (NASDAQ EBAY) not including its lacking merchant interest is fraud. While just a rumor, some people suggest that eBay may want to take the plunge and purchase Cybersource (NASDAQ CYBS). As Cybersource would not only give eBay access to the largest risk management service online, it would also give Paypal access to one of the more successful risk management tools online.

The acquisition would mean a lot for eBay. First off, it would nearly double Paypal’s processing volume if eBay were to incorporate the Cybersource network into the Paypal system. Secondly, it would give Paypal access to a much larger merchant base with Cybersource’s recent acquisition of Authorize.net and finally, it would show eBay and Paypal users a real focus on risk management.

I personally think that eBay would be getting off cheap, they could buy Cybersource today for probably $1.2 Billion and quickly capture that in-market share as the market would quickly see that back in additional market cap with the press release alone.

Good luck, eBay, this could be a buy for the books.

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There Are 7 Responses So Far. »

  1. Comment by zhar on 12 February 2008:

    CyberSource would be a great acquisition for ebay, With so many frauds going on in ebay and paypal, it is a clear indication, their system is breaking. They have to buy them now instead of competing with them later.

  2. Comment by Matt on 13 February 2008:

    It looks like ebay is on a google mood right now, acquiring whatever comes on their way! But aquiring cybersource would definitely be a benefiting move by ebay. But i feel that Cybersource is a bit overpriced with that amount!

  3. Comment by martin on 13 February 2008:

    Companies investing to improve their anti-fraud techniques never goes waste. To stay ahead of the game, they need to have the technology. It is really good move from ebay’s side.

  4. Comment by DayDreamer on 24 February 2008:

    Seems reasonable. No. of frauds are increasing as the days pass and there is need of more efficient security systems. Cybersource is a good name in security. I think Ebay+paypal+cybersource can be a gr8 combo.

  5. Comment by blogsha on 24 February 2008:

    Ebay is on fire. Just acquire what ever comes in your way and eat up the competition. Make more money.

  6. Comment by Jamie on 24 February 2008:

    I personally think that with paypal and cybersource this helps the overall online community.
    Ebay is taking the correct decision if they plan to purchase cybersource.

  7. Comment by jbradle02 on 14 April 2008:

    First of all, this is a great forum…so thanks.

    I would have been betting on someone from the financial services industry with an ecommerce bent to scoop up CyberSource — like RBS — but eBay call does make sense. However, having acquired Fraud Sciences for $169M to shore up their internal fraud mitigation efforts, they’d basically be buying CyberSource’s market reach. eBay would suddenly have three gateway platforms (PayFlow Pro, Auth.net, CYBS) and two fraud platforms (CyberSource and Fraud Sciences). Imagine those integration projects.

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