Market Overview

Alibaba/eBay Deal Is Not Imminent, Wedbush Analyst Says

Alibaba/eBay Deal Is Not Imminent, Wedbush Analyst Says
Related BABA
A New Blockchain ETF Focuses On China
The Cloud Rains Opportunity For Alibaba; Wells Fargo Projects 21% Upside In Shares
Crash Protection For Alibaba And As China Cracks Down On Fake Goods (Seeking Alpha)
Related EBAY
The IPO Outlook For The Week: Shipping, Medtech, Mobility And Retail
Supreme Court Rules States Can Levy Tax On Internet Sales; E-Commerce Stocks Sell Off
How Will The New Sales Tax Ruling Impact Online Retailers? (Seeking Alpha)

Speaking to Benzinga, Wedbush Analyst Gil Luria addressed the rumors of a deal between Alibaba Group Holding Ltd (NYSE: BABA) and eBay Inc (NASDAQ: EBAY).

Luria noted that a number of companies might be interested in acquiring eBay Marketplace or PayPal, and said Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) would most likely be interested in PayPal after it is spun off.

As far as eBay is concerned, “there really is only one potential buyer down the road [of sufficient size]...and that’s Alibaba,” according to Luria. EBay Marketplace has a market capitalization between $30 billion and $40 billion, he noted.

Related Link: Do Peers Predict An Earnings Miss At Baidu?

“That doesn’t mean it would happen," Luria added.

"But somewhere down the line if Alibaba decides that it wanted to enter the western markets in a more significant way, this is a path they could pursue.”

Luria commented that western markets are currently saturated and significant market share is held by eBay and Inc (NASDAQ: AMZN). That, he said, is why Alibaba is focused on China, with “some attempts to expand into Russia, Brazil and India.”

While Alibaba may wish to buy eBay at some point for greater access to the U.S., such a deal would not be imminent, Luria concluded.

Alibaba Group Holding Ltd recently traded at $87.22, up 1.42 percent.

eBay Inc, meanwhile, traded at $55.23, up 1.66 percent.

Kevin Riley and Brianna Valleskey contributed to this report.

Image credit: Thomas Lombard, Wikimedia

Posted-In: Gil Luria WedbushNews Rumors Exclusives Interview Best of Benzinga


Related Articles (AMZN + BABA)

View Comments and Join the Discussion!