eBay Spends $620 Million On Shopping

eBay is planning to purchase comparison-shopping site Shopping.com for about $620 million in cash. eBay will acquire all outstanding shares of Shopping.com stock for $21 per share. Shopping.com's cash, cash equivalents, and marketable securities as of May 31, 2005 totaled about $140 million. The acquisition will give eBay's many sellers a new sales channel and access to a new set of buyers. "On Shopping.com, the shopping experience will be enhanced by the addition of eBay listings to the product selection already available, and merchants will enjoy additional traffic and leads from eBay. Finally, the consumer-generated reviews on Epinions complement eBay's own community feedback-driven marketplace."