Last Updated on August 9, 2024
eBay is an American multinational auction company that promotes B2B and C2C business models. It was founded by Pierre Omidyar in the year 1995 and has developed massive clout ever since.
People from all over the world have developed booming businesses on eBay as it ensures a smooth buy-and-sell experience. You can purchase or sell electronics, cars, clothes, and so much more. What makes eBay different from other eCommerce companies is its niche; it hosts antiques and collectables, thus making it an online heaven for collectors and antique enthusiasts.
All this success allowed eBay to bring notable companies under its umbrella of influence. In this article, we will elaborate on eBay’s subsidiaries and all you need to know about them.
History of eBay
eBay founder Pierre Omidyar spent labor day at home, working on what he didn’t know would become his biggest venture. Pierre was a coder by profession and brought eBay to life in 1995.
Mark Fraser was eBay’s first-ever customer.
In July 1996, eBay sold goods valued at 7.2 billion. This month gave eBay a historic milestone along with a will to keep doing what they do best: sell!
In 2001, eBay sold a Gulfstream jet for US $4.9 million and an antique pair of Levis jeans for $46,000!
The very next year, eBay acquired PayPal. The latter made transactions more fluent and convenient for eBay. PayPal also catered to a wide variety of corporate clientele while remaining under the influence of eBay.
In 2020 eBay celebrated its 25th anniversary and also generated a commendable revenue of 10.27 billion US dollars.
Though its contenders have significantly overshadowed eBay’s glistening reputation, the company still managed to acquire leading companies during its peak success era. Some of them have also been sold off or returned to their original owners.
Top 8 eBay Subsidiaries
StubHub
This is a leading American ticketing resale and exchange company with a very troubled history! StubHub caters to a wide variety of sports, entertainment, concerts, and theatre events.
According to Forbes, this was the worst deal ever! eBay bought the company for $310 million from co-founder Eric Baker, only to find out that he would be fired from his own company after 15 years.
After generating massive profits from his side hustle Viagogo (also a ticketing company), he decided to buy back his beloved StubHub for a whopping $4 billion.
The story doesn’t end here. Weeks after his happy purchase, the coronavirus took over the globe and took along with it Baker’s ambitions and desires to catapult StubHub to imminent success!
iBazar
This was one of eBay’s earliest purchases. iBazar was a company of French origins, and it hosted free classified ads. It also allowed the exchange of trade services within Mexico.
People could buy or sell their products by listing them on iBazar’s website.
The name held significance to the population of Mexico; it was derived from Mexico’s traditional flea market and local fairs.
The website is now redirected to another one of eBay’s acquisitions known as Vivanuncios.
PayPal
In July 2002, eBay bought PayPal for $1.5 billion. This served as a watermark amongst eBay’s milestones.
The unison of the most competitive payment system with a coveted global auction website brewed remarkable success. People could now enjoy hassle-free payments and conduct seamless transactions as long as their eBay accounts were linked to their PayPal accounts.
The coalition lasted for more than a decade until PayPal became an independent company in 2015.
Craigslist
Craigslist is an American online advertising company founded by Craig Newmark in 1995 (the same year as PayPal).
In 2004, eBay paid $32 million for its acquisition, out of which $16 million was paid to the largest stakeholder Philip Knowlton (who resisted Craiglist’s sell-out) and the remaining amount was equally distributed between the founder and chief executive.
It sold its minority stake of 28.4% back to Craigslist in 2015 after a legal battle between the two corporations.
Skype
This famous online video-calling website fell under eBay’s influence in 2005. It was acquired at a value of $2.6 billion.
However, the coalition failed as the merger did not accurately cater to eBay’s consumer niche. eBay was fortunate enough to make a $1.4 billion profit when it sold Skype to Microsoft in 2011.
GittiGidiyor
Think of eBay’s Turkish version; that’s GittiGidiyor for you. It acquired a minority stake in the company in 2007 and let it operate as a distinct entity.
After analyzing GittiGidiyor’s potential, eBay decided to acquire majority stake for the company in 2011.
The online retail company was purchased for $217 million and the founder of the company left upon its sellout.
Brands4Friends
This is a German eCommerce company acquired by eBay in December 2010. The global auction giant bought B4F for US $200 million.
Vivanuncios
Vivanuncios is Mexico’s largest classified advertising website, with most of its specialization focusing on real estate.
It was bought with the intention of expanding eBay’s clout in Mexico. The figure of acquisition pricing remains ambiguous to date.
List of Other Companies Owned by eBay
- Alando
- Blackthorne
- Bill Me Later
- Butterfield & Butterfield
- Bill point
- BillSAFE
- Corrigan
- Cargigi
- Half.com
- Trader
- Meetup.com
- Kruse International
- StumbleUpon
- Precision Buying Service
- Positronic Inc.
- Up4Sale.com
- Internet Auction Co.
- CARad.com
- Motors.co.uk
- ExpertMaker
- SalesPredict
- Milo.com
- EachNet
- Fraud Sciences
- RedLaser
- PhiSix Fashion Labs
- Twice Secondhand
- Ticketbis
- Terapeak
- Z-Events
Ask Away: The FAQ Section
How does eBay generate revenue?
eBay charges its sellers a fee and makes a hefty income via advertisements.
The price charged to the seller is based on the final auction amount of the product sold.
How much profit can eBay sellers make?
The breadth of the profit range is quite variable. The average yearly revenue of a successful eBay seller is anywhere between $25,000-$30,000, whereas top sellers can stretch the mark up to a whopping $70,000 per annum or more!
What is eBay’s hottest-selling item?
Vintage video games and consoles (such as Nintendo) sell like hotcakes on eBay’s platform. However, other categories also attract a large consumer base. Health & Beauty items, in particular, have excellent selling potential.
