Josephine Roque - All Headline News Staff Writer
(AHN) - Senior eBay figure, Jeff Jordan is scheduled to leave the company in autumn. He had led eBay's core US business between 2000 and 2004 and the company's online payments business PayPal since 2004. The void left by Jordan will prompt a management restructuring.
Of late, eBay will face stiffer competition as search giant Google recently released its own online payments firm.
There is escalating rivalry amongst the two like eBay customers unable to use the new Google service.
Jordan's position at PayPal will be filled by Rajiv Dutta, eBay's former chief financial officer and head of strategy.
"Jeff Jordan has had a long and successful career at PayPal and eBay, building two of the most powerful e-commerce and payment brands on the internet," Whitman told BBC.
source : http://www.allheadlinenews.com/articles/7004153236
Saturday, July 08, 2006
Out at PayPal -- Ex-eBay Star Steps Down Amid Lower Estimates
By Dan Goodin Associated Press
SAN JOSE , Calif. - eBay Inc. faced a double blow Thursday as it announced a key executive's plans to leave and an analyst said Google Inc.'s new online payment service represents a bigger threat than expected to the Internet auction company's health.
Jeff Jordan, who most recently was president of eBay's PayPal payment business, led eBay's North America division from 2000 to 2004 and had been presumed by some analysts as the likely successor to chief executive Meg Whitman. He said in an interview that he wants to spend more time with his wife and two children.
He will be replaced by Rajiv Dutta, who has been with the company since 1998, serving as chief financial officer, head of strategy and president of Skype, the Internet phone service eBay acquired last year.
The San Jose-based company's shares fell $1.51, 5.3 percent, to $26.85 on the Nasdaq Stock Market following analyst reports that voiced concern about eBay's long-term position.
One report, by Lehman Bros. analyst Douglas Anmuth, said Jordan's departure was "highly significant" because it comes as eBay is facing new challenges and competitive threats.
"We view the senior management changes announced today with concern as they come at a critical time for eBay as it seeks to stimulate growth in its core markets while integrating various acquisitions," he wrote.
Besides eBay's $2.6 billion purchase of Skype, the company last year bought Shopping.com for $685 million.
Whitman said in an interview that she was undaunted by Jordan's departure, noting that Dutta and other executives taking new roles were well acquainted with eBay's business.
"EBay has very deep management bench strength," she said, calling that "a testament to the strong management team that's been built over the last five or six years."
The disclosure of Jordan's plans came the same day that another analyst, Citigroup's Mark Mahaney, cut his earnings growth estimates for eBay, based on his analysis of Google Checkout, an online payments service unveiled last week. Mahaney slashed his target price for eBay to $40 from $51.
Mahaney said he found Checkout, which has been under development for less than a year, to be faster, easier and less expensive than PayPal.
"As we see it, this speaks volumes about Google product development skills and PayPal's lack of innovation," Mahaney wrote.
"As the growth potential of PayPal off of eBay has been part of our core investment thesis on the stock, we view this Checkout development as materially raising eBay's risk profile."
Dutta responded that PayPal, with more than 105 million account holders, remained the uncontested leader in a terrain fraught with risks.
"People will tell you that launching a payment service is complex," he said. "As with any competitor we will pay a lot of attention to what anyone does in this space."
Dutta declined to say whether eBay intended to lower PayPal's fees to address its competition.
Among the other management changes, Alex Kazim, currently vice president of products for Skype, will assume Dutta's role as president of Skype.
Former Shopping.com CEO Lorrie Norrington is becoming president of eBay International. She replaces Matt Bannick, who will oversee eBay's initiatives in corporate philanthropy and the developing world.
source : http://www.redorbit.com/news/technology/564125/out_at_paypal__exebay_star_steps_down_amid_lower/index.html?source=r_technology
SAN JOSE , Calif. - eBay Inc. faced a double blow Thursday as it announced a key executive's plans to leave and an analyst said Google Inc.'s new online payment service represents a bigger threat than expected to the Internet auction company's health.
Jeff Jordan, who most recently was president of eBay's PayPal payment business, led eBay's North America division from 2000 to 2004 and had been presumed by some analysts as the likely successor to chief executive Meg Whitman. He said in an interview that he wants to spend more time with his wife and two children.
He will be replaced by Rajiv Dutta, who has been with the company since 1998, serving as chief financial officer, head of strategy and president of Skype, the Internet phone service eBay acquired last year.
The San Jose-based company's shares fell $1.51, 5.3 percent, to $26.85 on the Nasdaq Stock Market following analyst reports that voiced concern about eBay's long-term position.
One report, by Lehman Bros. analyst Douglas Anmuth, said Jordan's departure was "highly significant" because it comes as eBay is facing new challenges and competitive threats.
"We view the senior management changes announced today with concern as they come at a critical time for eBay as it seeks to stimulate growth in its core markets while integrating various acquisitions," he wrote.
Besides eBay's $2.6 billion purchase of Skype, the company last year bought Shopping.com for $685 million.
Whitman said in an interview that she was undaunted by Jordan's departure, noting that Dutta and other executives taking new roles were well acquainted with eBay's business.
"EBay has very deep management bench strength," she said, calling that "a testament to the strong management team that's been built over the last five or six years."
The disclosure of Jordan's plans came the same day that another analyst, Citigroup's Mark Mahaney, cut his earnings growth estimates for eBay, based on his analysis of Google Checkout, an online payments service unveiled last week. Mahaney slashed his target price for eBay to $40 from $51.
Mahaney said he found Checkout, which has been under development for less than a year, to be faster, easier and less expensive than PayPal.
"As we see it, this speaks volumes about Google product development skills and PayPal's lack of innovation," Mahaney wrote.
"As the growth potential of PayPal off of eBay has been part of our core investment thesis on the stock, we view this Checkout development as materially raising eBay's risk profile."
Dutta responded that PayPal, with more than 105 million account holders, remained the uncontested leader in a terrain fraught with risks.
"People will tell you that launching a payment service is complex," he said. "As with any competitor we will pay a lot of attention to what anyone does in this space."
Dutta declined to say whether eBay intended to lower PayPal's fees to address its competition.
Among the other management changes, Alex Kazim, currently vice president of products for Skype, will assume Dutta's role as president of Skype.
Former Shopping.com CEO Lorrie Norrington is becoming president of eBay International. She replaces Matt Bannick, who will oversee eBay's initiatives in corporate philanthropy and the developing world.
source : http://www.redorbit.com/news/technology/564125/out_at_paypal__exebay_star_steps_down_amid_lower/index.html?source=r_technology
Senior eBay Executive Steps Down
Josephine Roque - All Headline News Staff Writer
(AHN) - Senior eBay figure, Jeff Jordan is scheduled to leave the company in autumn. He had led eBay's core US business between 2000 and 2004 and the company's online payments business PayPal since 2004. The void left by Jordan will prompt a management restructuring.
Of late, eBay will face stiffer competition as search giant Google recently released its own online payments firm.
There is escalating rivalry amongst the two like eBay customers unable to use the new Google service.
Jordan's position at PayPal will be filled by Rajiv Dutta, eBay's former chief financial officer and head of strategy.
"Jeff Jordan has had a long and successful career at PayPal and eBay, building two of the most powerful e-commerce and payment brands on the internet," Whitman told BBC.
source : http://www.allheadlinenews.com/articles/7004153236
(AHN) - Senior eBay figure, Jeff Jordan is scheduled to leave the company in autumn. He had led eBay's core US business between 2000 and 2004 and the company's online payments business PayPal since 2004. The void left by Jordan will prompt a management restructuring.
Of late, eBay will face stiffer competition as search giant Google recently released its own online payments firm.
There is escalating rivalry amongst the two like eBay customers unable to use the new Google service.
Jordan's position at PayPal will be filled by Rajiv Dutta, eBay's former chief financial officer and head of strategy.
"Jeff Jordan has had a long and successful career at PayPal and eBay, building two of the most powerful e-commerce and payment brands on the internet," Whitman told BBC.
source : http://www.allheadlinenews.com/articles/7004153236
eBay BANS Google Checkout
eBay has updated it's "Safe Payments Policy" to specifically NOT allow Google Checkout. I suspect sellers (especially multichannel) will be pretty upset about this.
It will be interesting to see what lame excuse eBay uses to justify this. For example, they will probably say it's new so prone to fraud. Well, in reality it's a credit card gateway (and the same one eBay spends millions with as the top google adwords user) and credit cards are specifically allowed along with gateways (verisign/cybersource/authorize.net, etc.)
Here's the relevent excerpt:
Payment Services not permitted on eBay: AlertPay.com, anypay.com, AuctionChex.com, AuctionPix.com, BillPay.ie, ecount.com, cardserviceinternational.com, CCAvenue, ecount, e-gold, eHotPay.com, ePassporte.com, EuroGiro, FastCash.com, Google Checkout, gcash, GearPay, Goldmoney.com, graphcard.com, greenzap.com, ikobo.com, Liberty Dollars, Moneygram.com, neteller.com, Netpay.com, Nochex.com, paychest.com, payingfast.com, paypay, Postepay, Qchex.com, rupay.com, scripophily.com, sendmoneyorder.com, stamps, Stormpay, wmtransfer.com, xcoin.com
The other relevent excerpt is that credit cards are allowed:
Permitted on eBay.com: Sellers may offer to accept PayPal, credit cards including MasterCard/Visa /Amex/Discover, debit cards and bank electronic payments online for eBay purchases. Sellers may also offer to accept bank-to-bank transfers, often known as bank wire transfers or bank cash transfers. Sellers may accept COD (cash on delivery) or cash for in person transactions. Sellers may offer to accept personal checks, money orders, cashier’s checks, certified checks and other negotiable instruments. Please see the “Some Examples” section of this policy for those evaluated payment services permitted in the eBay marketplace.
http://pages.ebay.com/help/policies/accepted-payments-policy.html
This is eBay flexing their trust and safety muscles to control the way sellers take credit cards (and as a side-effect, limit their leverage with Google Adwords) if they feel it starts to infringe on the PayPal asset.
It's ironic they would do this here, and in the same breath go to Congress and fight the Net Neutrality battle.
You can't fight for an open internet one day and then implement policies that close the walled garden the next.
Coffee - eBay please wake up and smell it. Trust and Safety is running (and ruining) your company.
source : http://ebaystrategies.blogs.com/ebay_strategies/2006/07/ebay_bans_googl.html
It will be interesting to see what lame excuse eBay uses to justify this. For example, they will probably say it's new so prone to fraud. Well, in reality it's a credit card gateway (and the same one eBay spends millions with as the top google adwords user) and credit cards are specifically allowed along with gateways (verisign/cybersource/authorize.net, etc.)
Here's the relevent excerpt:
Payment Services not permitted on eBay: AlertPay.com, anypay.com, AuctionChex.com, AuctionPix.com, BillPay.ie, ecount.com, cardserviceinternational.com, CCAvenue, ecount, e-gold, eHotPay.com, ePassporte.com, EuroGiro, FastCash.com, Google Checkout, gcash, GearPay, Goldmoney.com, graphcard.com, greenzap.com, ikobo.com, Liberty Dollars, Moneygram.com, neteller.com, Netpay.com, Nochex.com, paychest.com, payingfast.com, paypay, Postepay, Qchex.com, rupay.com, scripophily.com, sendmoneyorder.com, stamps, Stormpay, wmtransfer.com, xcoin.com
The other relevent excerpt is that credit cards are allowed:
Permitted on eBay.com: Sellers may offer to accept PayPal, credit cards including MasterCard/Visa /Amex/Discover, debit cards and bank electronic payments online for eBay purchases. Sellers may also offer to accept bank-to-bank transfers, often known as bank wire transfers or bank cash transfers. Sellers may accept COD (cash on delivery) or cash for in person transactions. Sellers may offer to accept personal checks, money orders, cashier’s checks, certified checks and other negotiable instruments. Please see the “Some Examples” section of this policy for those evaluated payment services permitted in the eBay marketplace.
http://pages.ebay.com/help/policies/accepted-payments-policy.html
This is eBay flexing their trust and safety muscles to control the way sellers take credit cards (and as a side-effect, limit their leverage with Google Adwords) if they feel it starts to infringe on the PayPal asset.
It's ironic they would do this here, and in the same breath go to Congress and fight the Net Neutrality battle.
You can't fight for an open internet one day and then implement policies that close the walled garden the next.
Coffee - eBay please wake up and smell it. Trust and Safety is running (and ruining) your company.
source : http://ebaystrategies.blogs.com/ebay_strategies/2006/07/ebay_bans_googl.html
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