Zong strengthens PayPal's leadership position in mobile payments and
SAN JOSE, Calif. & MENLO PARK, Calif.--(BUSINESS WIRE)--
eBay Inc. (NASDAQ: EBAY) announced today that it has agreed to acquire
Zong, a leading provider of payments through mobile carrier billing, for
total consideration of approximately $240 million in cash. Zong
leverages connections with more than 250 mobile network operators around
the world, offering localized, secure and easy-to-use payments
capabilities for digital goods and services in 21 languages and 45
countries. Combined with PayPal's leading global payment platform
serving 100 million active accounts worldwide, the company expects that
Zong will add complementary technology and talent that help strengthen
PayPal's leadership position in mobile payments and digital goods.
Zong allows consumers to easily pay for purchases from their mobile
phones or computers through direct carrier billing. Consumers simply
enter their mobile phone numbers. Then, in a matter of seconds, Zong
verifies that number and clears the payment on the customer's existing
wireless service account.
With Zong, PayPal will have greater ability to offer consumers even more
choices in how they want to pay — virtually anytime, anywhere. Both Zong
and PayPal help to enable digital goods merchants to increase
conversion, because they offer a faster, easier way for consumers to pay
without leaving the merchant's site.
"Commerce is changing. With mobile phones, we walk around with a mall in
our pockets. PayPal helps to make money work better for customers in
this new commerce reality — no matter how they want to pay or what
device they're using," said Scott Thompson, president of PayPal. "We
believe that Zong will strengthen this value by helping us reach the
more than 4 billion people who have mobile phones, giving them more
choice and security when they pay."
"Our customers love the convenience of paying with their mobile numbers
— a number they know by heart, and a device that they always have with
them," said David Marcus, CEO of Zong. "We look forward to extending our
services to PayPal's more than 9 million merchants around the world. And
we're committed to working with carriers and merchants to help them
drive more sales across devices."
PayPal is an industry leader in mobile payments and digital goods.
PayPal expects to transact more than $3 billion in mobile payments in
2011. Currently, more than 8 million customers are making purchases on
their mobile phones through PayPal, driving up to $10 million in mobile
payments per day. PayPal offers Mobile Express Checkout for merchants,
PayPal Mobile Payments Library for developers, PayPal payment apps for
iPhone, Android, Nokia and Blackberry, and location-based shopping with
Earlier this year, PayPal launched PayPal for Digital Goods, a new
product that lets buyers pay in two clicks without leaving their gaming
experience or content site. In 2010, PayPal processed $3.4 billion in
payments for digital goods.
eBay Inc. does not expect the acquisition of Zong to have a material
impact on its financial guidance as issued in conjunction with its first
quarter earnings release on April 27, 2011. The transaction is subject
to customary closing conditions, including regulatory approval, and is
expected to close in the third quarter of 2011.
About eBay Inc.
Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) connects
millions of buyers and sellers globally on a daily basis through eBay,
the world's largest online marketplace, and PayPal, which enables
individuals and businesses to securely, easily and quickly send and
receive online payments. We also reach millions through specialized
marketplaces such as StubHub, the world's largest ticket marketplace,
and eBay classifieds sites, which together have a presence in more than
1,000 cities around the world. For more information about the company
and its global portfolio of online brands, visit www.ebayinc.com.
PayPal is the faster, safer way to pay and get paid online. The service
allows members to send money without sharing financial information, with
the flexibility to pay using their account balances, bank accounts,
credit cards or promotional financing. With 100 million active accounts
in 190 markets and 25 currencies around the world, PayPal enables global
commerce. PayPal is an eBay (Nasdaq:EBAY) company. PayPal is
headquartered in San Jose, Calif. and its international headquarters is
located in Singapore. More information about the company can be found at
Zong is a leading mobile payments platform for sellers of digital goods
and services. Zong leverages direct connections with mobile network
operators around the world to provide a secure payment solution with
best-in-class connectivity and service quality. Zong is a mobile payment
provider for Facebook Credits and is also accepted at over a thousand
digital merchant sites. Reaching 3.2 billion mobile users through over
250 carrier connections, Zong provides localized payment capabilities in
21 languages and 45 countries. Zong is based in Menlo Park with offices
in Geneva, Paris and Dusseldorf, and is backed by Matrix Partners,
Advent Venture Partners and Newbury Ventures. For more information,
please visit www.zong.com.
This announcement contains forward-looking statements that 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 receipt and timing of regulatory
approval for the transaction, the possibility that the transaction may
not close, the reaction to the transaction of Zong's customers and
merchant and carrier partners, PayPal's plans for Zong, the future
growth of Zong's and PayPal's businesses, 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 our business and results is
included in eBay's Annual Report on Form 10-K for the year ended
December 31, 2010, its Quarterly Reports on Form 10-Q, its Current
Reports on Form 8-K, and other periodic filings. All forward-looking
statements are based on information available to eBay on the date
hereof, and eBay assumes no obligation to update such statements.
Anuj Nayar, 408-967-5730
Inc. Investor Relations
Tracey Ford, 408-376-7205
Source: eBay Inc.
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