In accordance with the terms of the acquisition agreement announced on Oct. 6, 2008, eBay acquired Bill Me Later for approximately $820 million in cash and approximately $125 million worth of outstanding options, net of option exercise proceeds.
The estimated outlook for the Bill Me Later business is reflected in eBay's guidance for the fourth quarter of 2008 issued on October 15, 2008. As previously indicated, for the full year 2009, eBay expects the transaction to be dilutive to non-GAAP and GAAP earnings per share by $0.06 and $0.13, respectively. eBay expects the deal to be accretive in 2011. For more information on how non-GAAP financial measures are calculated, please refer to eBay's third quarter earnings release issued on October 15, 2008.
About Bill Me Later, Inc.
Bill Me Later is a leader in the digital payments industry with its popular Bill Me Later® product and flexible financing programs. The rapidly growing Bill Me Later network enables top-tier retailers and travel providers to attract high value customers with an effortless payment experience. Bill Me Later® Business offers a payment service tailored specifically for the small and medium-sized business buyer. The Bill Me Later network includes more than 1,000 online stores, catalogs and travel partners including Amazon, Borders, Blue Nile, Bluefly, Continental Airlines, eLUXURY, Fujitsu, JetBlue, Overstock, QVC, Toshiba, Toys "R" Us, US Airways, Walmart.com and Zappos. Millions of consumers and businesses rely on the safety and convenience of Bill Me Later's payment solutions when shopping online, via phone and in-store. Founded in 2000, Bill Me Later is headquartered in Timonium, Md. with additional offices in Hunt Valley, Md. and San Francisco. For more information, visit www.billmelater.com.
Founded in 1995, eBay Inc. connects hundreds of millions of people around the world every day, empowering them to explore new opportunities and innovate together. eBay Inc. does this by providing the Internet platforms of choice for global commerce, payments and communications. Since its inception, eBay Inc. has expanded to include some of the strongest brands in the world, including eBay, PayPal, Skype, StubHub, Shopping.com, and others. eBay Inc. is headquartered in San Jose, Calif.
PayPal is the faster, safer way to pay and get paid online. The service allows anyone to pay without sharing financial information and gives consumers the flexibility to pay in any way they prefer, including through credit cards, bank accounts or account balances. With more than 65 million active accounts in 190 markets and 19 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company. More information about the company can be found at https://www.paypal.com.
This announcement contains forward-looking statements relating to the future performance of our businesses that are based on its current expectations, forecasts and assumptions. Those statements involve risks and uncertainties, and actual results may differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the impact of the credit crisis, possible economic downturn and other changes in political, business and economic conditions, including conditions that affect consumer confidence or ecommerce growth; the future growth of Bill Me Later; the reaction of consumers, customers and competitors to the transaction; the possibility that integration following the transaction may be more difficult than expected; the increasing need to grow revenues from existing users in established markets; an increasingly competitive environment for eBay's businesses; the complexity of managing a growing company with a broad range of businesses; the company's need to manage regulatory, tax, IP and litigation risks (including risks specific to PayPal and the financial industry); the need to upgrade technology and customer service infrastructure at reasonable cost while adding new features and maintaining site stability; foreign-exchange-rate fluctuations; changes in political, business, and economic conditions; the company's ability to profitably expand its business model to new types of merchandise and sellers; and the impact and integration of recent and future acquisitions. More information about potential factors which could affect our business and financial results is included in eBay's Annual Report on Form 10-K for the year ended December 31, 2007, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and other periodic filings. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.