Dan Loeb Buys eBay; PayPal Not Threatened By Apple

New bets on eBay Inc EBAY and Alibaba Group Holding Ltd were disclosed Tuesday by hedge fund manager Daniel Loeb, who also called for the breakup of Amgen Inc.

In a letter to investors in his Third Point fund, Loeb said would-be eBay investors have "an interesting entry point" in light of Apple Inc.'s AAPL recent launch of its Apple Pay service.

The Apple service has spooked investors who perceive severe competition for PayPal, the eBay unit slated for spinoff next year, Loeb said.

But the Apple service is focused on point-of-sale transactions and offers direct competition to 2 percent or less of PayPal's total payment volume, Loeb said.

Apple's launch might actually help PayPal by spurring merchants, consumers and financial institutions to finally "buy in" to mobile payments and create a market where PayPal could conceivably undercut competitors, in Loeb's view.

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Posted In: Analyst ColorNewsAnalyst RatingsDan Loeb
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