Analyst: An eBay Acquisition Would Be Confusing For Alibaba

Speaking to Benzinga, Tigress Financial Partners Chief Investment Officer Ivan Feinseth discussed the rumors that Alibaba Group Holding Ltd BABA may seek to acquire eBay Inc EBAY.

Feinseth said that while possible, “it’s highly unlikely” that Alibaba would consider such an acquisition because the company already “has a lot to digest” after its IPO and some weakness in its first quarter.

“To go on an acquisition spree” at this time would be confusing and an unclear strategy considering its core business, according to Feinseth.

While there are both similarities and possible complementary differences in each company’s platform, Feinseth did not think it would be “a good fit.”

Related Link: Alibaba/eBay Deal Is Not Imminent, Wedbush Analyst Says

Commenting on Alibaba’s strategy, Feinseth felt that the company’s CEO, Jack Ma, was focused on “growth and building” after the IPO, rather than making acquisitions.

Alibaba Group Holding Ltd recently traded at $86.75, up 0.87 percent.

eBay Inc recently traded at $55.21, up 1.62 percent.

Kevin Riley and Brianna Valleskey contributed to this report.