EBay Buys VeriSign Unit for $370 Million

SAN FRANCISCO — Online marketing giant eBay and domain registrar VeriSign announced a strategic alliance Monday that will include eBay’s purchase of VeriSign’s payment processing business.

PayPal, the online payment company eBay bought in 2002 for roughly $1.5 billion, will incorporate VeriSign’s technology into its merchant services, including VeriSign’s password protection technology that is designed to thwart identity theft.

EBay, via PayPal, is expected to shell out $370 million in cash and stock options as part of the deal.

“VeriSign's payment gateway is a market-proven product that perfectly complements PayPal's existing payment services,” Jeff Jordan, president of PayPal, said of the deal. “This acquisition allows PayPal to give customers more choice in payment services.”

VeriSign saw an initial 5.2 percent jump in its stock price following the news, but finished the day only about half-a-percent higher at $20.04. Ebay ended the day up 1.4 percent at $40.46.

Officials at PayPal said they hoped the purchase would expand PayPal’s presence in the merchant services market, a space VeriSign has long dominated. VeriSign’s payment gateway gives merchants several processing and authorization tools that PayPal officials expect to bring an additional $100 million in revenue to the company in the first year alone.

PayPal currently processes around $40 billion in online payments a year.

“The acquisition provides our worldwide merchant base with the benefits of PayPal's already robust payment capabilities,” Stratton Sclavos, chairman and CEO of VeriSign, said.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pineapple Support to Host Autism Spectrum Support Group

Pineapple Support is hosting a free online support group for performers and creators who are, or suspect they may be, on the autism spectrum.

ImLive Launches Revamped Member Loyalty Program

Cam platform ImLive has revamped its member loyalty program.

GoFundMe Set Up for Danny Ferretti's Medical Expenses

A GoFundMe campaign has been set up for Fangear founder Danny Ferretti, who requires extensive lung surgery.

Byborg Acquires Cuties AI

Byborg Enterprises has acquired adult artificial intelligence startup Cuties AI.

Irish Government Releases Report on Sex Work Decriminalization Legislation

The Irish government has released a report reviewing a 2017 law that decriminalized sex work across the country.

Texas Bill Would Require Age Verification for Online Sex Toy Sales

A new bill in the Texas state legislature would require online retailers to implement age verification of purchasers before selling “obscene devices” to anyone in that state.

New York Assemblyman Proposes Banning the Term 'Sex Work'

Republican New York Assembly Member Brian Maher has introduced a bill to prohibit the use of the term "sex work" in government documents.

Age Verification Watch: Michigan Joins the AV Club, Some Laws Just Make No Sense

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Free Speech Groups Back SCOTUS Appeal of Georgia Strip Club Tax

Two civil liberties organizations filed an amicus brief Tuesday supporting a petition asking the U.S. Supreme Court to hear an appeal in a case involving whether a tax specifically aimed at adult entertainment establishments violates the First Amendment.

Show More