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May 26, 2006
What Sort Of Startups eBay's Looking To Buy
In a Barron's article that repeats the familiar negative refrains about European entrepreneurship and VCs, there was a nugget about what type of companies eBay International's M&A executive, Gil Penchina, is looking to acquire and a word of advice for VCs that might be insisting on too quick a path to profitability.
Penchina says companies like eBay who use their valuable stock to buy new technologies, are rarely interested in acquiring revenues. Instead, he says, eBay is looking all over the world for certain businesses, such as local classified advertising Websites. Ebay's acquisitions represent a buy-versus-build strategy that covets large scale, robust technology and market-leading brands, Penchina says. .... The eBay M&A specialist realizes that financial backers, not entrepreneurs, place the revenue and earnings demands on young companies. He urged the audience to persuade their VCs to eschew early financial returns for rapid growth. New companies "need to get big fast," he asserts.
Read - European VCs Not Venturesome Enough (Barronsonline)
Posted on May 26, 2006 05:20 PM | Posted to News And Updates | Permalink
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