eBay Completes Acquisition of Rent.com
San Jose, Calif., February 23, 2005 - eBay, The World's Online Marketplace (Nasdaq: EBAY; www.ebay.com), today completed its previously announced acquisition of Rent.com, a leading Internet listing website in the apartment and rental housing industry.
eBay announced the acquisition on December 16, 2004. In accordance with the terms of the amended acquisition agreement as announced on February 7, 2005, eBay acquired Rent.com for approximately $415 million in cash plus acquisition costs, net of Rent.com's cash on hand.
As previously stated, eBay expects the acquisition to be slightly accretive to full-year 2005 pro forma diluted earnings per share, though dilutive to 2005 GAAP diluted earnings per share due to the amortization of acquired assets.
Rent.com is the only transaction-based Internet listing website in the apartment and rental housing industry. Its unique business model has made it the number one third-party producer of verified lease transactions in the nation online and offline. The Rent.com service is available to renters and property owners and managers in most American cities, including the nation's top fifty metropolitan markets.
eBay is The World's Online Marketplace®. Founded in 1995, eBay created a powerful platform for the sale of goods and services by a passionate community of individuals and businesses. On any given day, there are millions of items across thousands of categories for sale on eBay. eBay enables trade on a local, national and international basis with customized sites in markets around the world. Through an array of services, such as its payment solution provider PayPal, eBay is enabling global e-commerce for an ever growing online community.
This announcement contains forward-looking statements regarding the expected impact of the acquisition of Rent.com on eBay's financial results. Those statements involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the reaction of the users of Rent.com's services, the future growth of Rent.com's services, the reaction of competitors to the transaction, and the possibility that integration following the transaction may be more difficult than expected. More information about potential factors which could affect eBay's business and financial results is included in eBay's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.