Corporate Strategies in Action: eBay Acquires and Divests PayPal

Abstract

The growth of eBay as an online trading site was assisted by their acquisition of PayPal. The future of eBay is now emerging after eBay's decision to split EBay and PayPal into separate businesses. The advantage of being a first mover or a second mover into an industry is explored, as are the impacts of acquisition and diversification as business strategies.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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