eBay Motors Announces Acquisition Agreement and New Strategic Relationship
SAN JOSE, Calif.--Jan. 31, 2003--eBay| -- | Acquisition of CARad.com expected to simplify listing process and auction management for dealers |
| -- | eBay to become exclusive auction-style partner on Kelley Blue Book's kbb.com |
eBay (Nasdaq:EBAY; www.ebay.com), the world's online marketplace, today announced two agreements that are expected to further fuel the strong growth of the eBay Motors business. The company announced its intention to acquire certain assets of Texas-based CARad.com, a leader in online auction management services for car dealers. The company also announced that it has forged a strategic relationship with Kelley Blue Book's kbb.com, the No. 1 automotive information site on the Web, to become its exclusive auction-style partner.
Coupled together, eBay expects these relationships to enable dealers to more easily manage a higher volume of auctions, while also helping more buyers find the cars they want on eBay Motors. Consistently ranked the No. 1 automotive site on the Web by Nielsen//NetRatings, eBay Motors sold more than three billion dollars worth of vehicles and parts on its site in 2002.
"The agreement to acquire the CARad.com business is an important step towards our goal of making it even easier for car dealers to sell more cars on our site," said Stephanie Tilenius, vice president and general manager of eBay Motors. "Additionally, our relationship with kbb.com should ensure that more people are aware of our site at the critical point when they are normally considering the purchase or sale of their used vehicle."
CARad.com Acquisition Expected to Enhance eBay's Service to Dealers
eBay's agreement to acquire certain assets of CARad.com is consistent with eBay's overall strategy to work with leading companies to innovate and create the best possible services for its existing and potential buyers and sellers. CARad.com's technology gives car dealers a simplified way to list and manage more vehicle auctions on eBay Motors. In addition to making the listing and auction management process easier for existing sellers, this proposed acquisition is expected to encourage more car dealers to sell their inventory on eBay Motors.
This acquisition, which is subject to certain closing conditions, is expected to close during the first quarter of 2003. Financial terms of the proposed acquisition were not disclosed. eBay also confirmed that based on its current business outlook, the proposed acquisition will not impact its most recent financial guidance for the first quarter and the full year 2003 which was provided by eBay on January 16, 2003.
Relationship with Trusted Source kbb.com
Through the relationship with kbb.com, automotive shoppers who use kbb.com for research and pricing information will have direct access to the relevant vehicle listings on eBay Motors. Consumers who want to sell their used vehicles and are looking for content and pricing information on kbb.com will also be able to easily link to eBay Motors to list their used vehicle for sale. Additionally, this agreement will allow thousands of franchise dealers nationwide who use KarPower, Kelley Blue Book's dealer inventory management software, to more easily list inventory on eBay Motors.
"As the No. 1 automotive information site on the Web, it's important to work with other top brands like eBay to help our site visitors make more educated decisions," said Stephen Henson, kbb.com's vice president of marketing and business development. "The links to eBay's auction-style listings will give kbb.com visitors more flexibility in how they buy and sell vehicles."
About eBay Motors
eBay Motors (www.ebaymotors.com), a part of eBay Inc., the world's online marketplace(TM), is the Internet's largest marketplace for buying and selling all things automotive. The site offers everyday cars for everyday drivers, as well as collector cars, motorcycles, auto parts and accessories. Consistently ranked the No. 1 automotive site on the Web by Nielsen//NetRatings, eBay Motors sold more than three billion dollars worth of vehicles and parts on its site in 2002.
About eBay
eBay is the world's online marketplace(TM). 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.
Forward-Looking Statements
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to eBay's ability to grow its business and user base. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to: eBay's need to manage an increasingly broad range of businesses; dealing with the increasingly competitive environment for online trading, both in specific vertical categories (including the online automotive space) and generally; managing the integration of PayPal and the litigation, regulatory, credit card association and other risks specific to PayPal; managing other regulatory, tax and litigation risks even as its product offerings and geographies expand; maintaining site stability on all of its sites; continuing to expand its model to new types of merchandise and sellers; continuing to expand outside of the U.S.; the timing and commercial success of new features and functions added to eBay's sites; the success of the company's commercial partners and commercial relationships; and the costs and benefits of announced and prospective joint ventures, acquisitions and other commercial transactions. All forward-looking statements contained herein are premised on the assumption that there is no material worsening of current geo-political, financial and/or economic conditions due to the occurrence of terrorist activities, war or any other calamity or crisis. More information about potential factors which could affect eBay's business and financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 2001, its quarterly reports on Form 10-Q, and its other S.E.C. filings and prospectuses. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.