Following China’s e-commerce conglomerate Alibaba’s IPO, reports say some analysts are eying how rivals will respond to the changing market landscape, with one industry expert suggesting that Google and eBay, which are both facing their own challenges, should merge.
Reports say Baird Equity Research’s Colin Sebastian suggested this week that Google should acquire eBay as Google struggles in the e-commerce realm and while eBay is faced with pressure to spin off its PayPal unit. A merger, Sebastian said, could be the only way for the two to compete with Alibaba.
Citing Google’s struggling Google Wallet mobile payments operations, the analyst said that “acquiring eBay/PayPal would be one way for Google to secure quickly a strong leadership position in commerce and payments, and likewise, could represent a better strategic option than alternatives proposed for eBay.”
Alibaba announced Sunday it would launch an IPO in the US; Google rival Yahoo owns 24 percent of Alibaba, according to reports, and will likely profit from the offering.
Full Content: Mercury News
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