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Thursday, July 07, 2011
eBay to Acquire Zong


eBay Inc.announced today that it has agreed to acquire Zong, a provider of payments through mobile carrier billing, for total consideration of approximately $240 million in cash.

Zong leverages connections with more than 250 mobile network operators around the world, offering localized payments capabilities for digital goods and services in 21 languages and 45 countries.

Ebay already owns online payment service PayPal. Combined with PayPal?s global payment platform serving 100 million active accounts worldwide, eBay expects that Zong will add complementary technology and talent that help strengthen PayPal?s leadership position in mobile payments and digital goods.

Zong allows consumers to pay for purchases from their mobile phones or computers through direct carrier billing. Consumers simply enter their mobile phone numbers. Then, in a matter of seconds, Zong verifies that number and clears the payment on the customer?s existing wireless service account.

eBay Inc. does not expect the acquisition of Zong to have a material impact on its financial guidance as issued in conjunction with its first quarter earnings release on April 27, 2011.


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