eBay Completes Acquisition of Shopping.com
San Jose, Calif., August 30, 2005 eBay (Nasdaq: EBAY; www.ebay.com) today completed its previously announced acquisition of Shopping.com (Nasdaq: SHOP; www.shopping.com), a leader in online comparison shopping and consumer reviews.
In accordance with the terms of the acquisition agreement as announced on June 1, 2005, eBay acquired all outstanding shares of Shopping.com stock for $21 per share in cash, or total consideration of approximately $634 million. Shopping.com's cash, cash equivalents, and marketable securities as of June 30, 2005 totaled approximately $148 million.
eBay expects the acquisition to be immaterial to its full-year 2005 pro forma diluted earnings per share, and dilutive to its 2005 GAAP diluted earnings per share due to incremental charges for stock-based compensation and the amortization of acquired intangible assets.
Shopping.com is a global leader in online comparison shopping with sites in the U.S., the U.K. and France. With approximately 50 million unique visitors a month, according to comScore Media Metrix, it is the third largest shopping destination on the web. The company's mission is to help shoppers everywhere use the power of information to find, compare and buy anything.
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 Shopping.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 eBay and Shopping.com to the transaction; the reaction of competitors to the transaction; the future growth of Shopping.com's services; and the possibility that integration following closing will prove more difficult than expected. More information about potential factors which could affect either company's business and financial results is included in each company's Annual Report on Form 10-K for the year ended December 31, 2004, and each company's Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses. All forward-looking statements are based on information available to eBay and Shopping.com on the date hereof, and eBay and Shopping.com assume no obligation to update such statements.