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 © 2024 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

Braindance Unveils '6DOF' VR Tech

Interactive virtual reality platform Braindance has debuted its new Six Degrees of Freedom (6DOF) VR technology.

Kiiroo, Pineapple Support Launch 'Empower Hour' Series on FeelHubX YouTube Channel

Kiiroo and Pineapple Support have teamed up to launch the “Empower Hour” series on the FeelHubX YouTube channel.

Kansas Law Firm Deploys Religion, Bunk Science While Recruiting Plaintiffs Under AV Law

Kansas-based personal injury law firm Mann Wyatt Tanksley is promoting debunked scientific theories and leveraging religious affiliation against the industry while it seeks potential plaintiffs for lawsuits against adult companies under the state’s age verification law.

UK Tech Secretary Lists Age Verification Among OSA Priorities

Peter Kyle, the U.K.’s Secretary of State for Science, Innovation and Technology, on Wednesday made public a draft version of his priorities for implementing the Online Safety Act (OSA), including age verification.

AEBN Publishes Popular Seraches by Country for September, October

AEBN has released its list of popular searches from its straight and gay theaters in all 50 states and the District of Columbia.

Avery Jane Featured on 'Adult Time Podcast'

Avery Jane is the latest guest on the “Adult Time Podcast,” hosted by studio CCO Bree Mills.

FSC: Kansas Law Firm Threatens Adult Site Over Age Verification

The Free Speech Coalition (FSC) has been notified that Kansas law firm Mann Wyatt Tanksley has sent a letter threatening an adult website with a lawsuit for breaking the state's age verification law.

10th Circuit Rejects Final FSC Appeal in Utah AV Case

The United States Court of Appeals for the 10th Circuit on Monday rejected a motion by Free Speech Coalition (FSC) requesting that the full court rehear its appeal in Free Speech Coalition v. Anderson, the industry trade association’s challenge to Utah’s age verification law.

Trump Nominates Project 2025 Contributor, Section 230 Foe to Chair FCC

President-elect Donald Trump has nominated, as his pick to head the Federal Communications Commission, Brendan Carr — an author of Project 2025 who has called for gutting Section 230 protections.

Streamate's Elevate Partners With Miss Mei on Decriminalization Initiative

Streamate’s Elevate initiative is debuting a November collaboration with creator and community advocate Miss Mei that will highlight the modern criminalization of sex work.

Show More