Accounting : Financial Analysis of Ebay

Topics: Balance sheet, Financial ratios, Asset Pages: 19 (3940 words) Published: February 27, 2013
National economics university
Business school

| | | | |Group assignment | |EBAY MEDIA ( EBAY INC) | |[pic] | |Financial analysis statement for the year ended | |December in 2011 |

Group: Lê Phương Dung
Phạm Thị Khánh Huyền
Ngô Vũ Chung Anh
Đặng Thị Minh Phương
Trương Hà Phương


In this report, we analyze the financial position of Ebay media ( Ebay INC) based on ratio analysis with the data from the balance sheet, income statements, and cash-flow statements.

1. Nature and operation of eBay Inc

a, History and operation of eBay Inc

eBay was founded in Pierre Omidyar's San Jose living room back in September 1995. It was from the start meant to be a marketplace for the sale of goods and services for individuals. The frequently repeated story that eBay was founded to help Omidyar's fiancée trade Pez candy dispensers was fabricated by a public relations manager in 1997 to interest the media, which were not interested in the company's previous explanation about wanting to create a "perfect market". In November 1996, eBay entered into its first third-party licensing deal, with a company called Electronic Travel Auction to use SmartMarket Technology to sell plane tickets and other travel products. Growth was phenomenal; in January 1997 the site hosted 2,000,000 auctions, compared with 250,000 during the whole of 1996. The company officially changed the name of its service from AuctionWeb to eBay in September 1997. Originally, the site belonged to Echo Bay Technology Group, Omidyar's consulting firm. Omidyar had tried to register the domain name, but found it already taken by the Echo Bay Mines, a gold mining company, so he shortened it to his second choice, In February 2002, the company purchased IBazar, a similar European auction web site founded in 1993 and then bought PayPal on October 14, 2002. By early 2008, the company had expanded worldwide. On January 23, 2008 the company announced that Whitman would step down on March 31 In late 2009, eBay completed the sale of Skype for $2.75 billion, but will still own 30% equity in the company. On December 20, 2010, eBay announced its acquisition of a German online shopping club,, for €150 million ($197 million) to strengthen the company's interests in the fashion industry in Europe. b, The Business Model

eBay has built an online person-to-person trading community on the Internet, using the World Wide Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category. eBay has both streamlined and globalized traditional person-to-person trading, which has traditionally been conducted through such forms as garage sales,...
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