SaleHoo

[grahamg]

I saw this and I thought I'd share it with you...

"EBay has reported a quarterly loss of $936m (£459m), caused by its previously announced admission that it paid too much for internet phone firm Skype.
The online auction house said this month it would have to take a $900m charge due to overvaluing Skype, which it bought for $2.6bn in 2005.

However, eBay's results still beat market targets, as its revenues for the three months to 30 September soared.

Its third quarter revenues rose 30% from a year earlier to $1.89bn."



Whats Next??

[Grey Nomad]

Probably just a way of "talking down" profit expetations.
Ebay going broke? :-) never
Not with the popularity and charges they have!

[jimmy_salehoo]

Ebay owns over 13 companies that generate a postive cashflow for them. Dont worry Paypal will just increase the amount of people they screw over to compensate for skypes losses.

[Berk LLC]

I was taking a look at their 10Q that was recently filed with the SEC, and this "charge off" relates to the goodwill that was recorded with the aquistion of Skype. Basically what they are saying, is that they overpaid 1.3 billion for Skype and the projected present value of future cash flows was less then the amount of goodwill recorded, so they had to take an impairment on it. It is a one time write off that does not affect their cash flows and will have little impact on the company other than reducing their net income for the year.

So grahamg, you ask what is next, this will have no affect on their operations unless they were planning on issueing stock in the next 6 months and will not change anything for how they operate. It is an accounting issue.

[grahamg]

DAM!

[gulfy13]

One thing you must understand about all major corparations is the way that they actually look and the "profit and lost" columns.

When you are a major corporation that is selling stocks or has large volumn of capital tied up in the market place, the last thing you want to do is claim that you are outrigh losing money. It's simply bad for business.

However, some companies actually claim "losses" as a way of creating revinue. This is done by a company stating that profits are down and stock prices are lowered. For potential stock buyers, this is a good time to purchase these companies stocks, if that company has an overall good track record of annual profits, (such as ebay). they buy low with the hopes of the stock re-gaining profit in the future..

Many companies claim a loss even though they actually made an overall profit. For instance, if their finanial dept predicted profits of 100 million dollars and they only made 90 million dollars profit, some companies will claim they had a "loss" of 10 million dollars...This may in the short term show stock prices to drop, yet at the same time, investors will jump to buy up the stock while it's down with hopes of it gaining strength in the short term future... Many day traders make their living this way..

[grahamg]

DOUBLE DAM!

[GRBoutique]

Hahaha! You really do hate ebay huh grahamg? Well I don't blame you because of their ridiculous high seller fees =)

[grahamg]

Yes, the problem I have is I dont mind paying for service I never had or will mind paying for that, but when there is no service your wasting your time and money

[bayericlowe]

eBay lose money? I don't think so.

eBay was smart like most individuals and bought their way into multiple income streams everywhere so that they could continually receive income...

But anyone that knows business knows to be truly successful, you have to plan ahead & build multiple income streams for yourself & others........

I'm just glad I got out of it & can now beat the likes of eBay and Google at their own game, 800+ hits to Bidville & friends now.......

The traffic is piling out like an unforgettable water fountain onto Bidville, and I predict that marketplace is going to fill up.... ;)

[grahamg]

Good luck with your Bidville project.