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December 15, 2010, 2:01 PM EST
By Joseph Galante
Dec. 15 (Bloomberg) -- EBay Inc. acquired Critical Path Software Inc., a developer of smartphone applications, to accelerate its lead in mobile commerce.
The acquisition doubles the size of EBay’s mobile team, which has dozens of engineers, Steve Yankovich, a vice president at the company, said today. Terms weren’t disclosed for the deal, which EBay called a “talent acquisition.”
EBay, the largest e-commerce marketplace, is trying to capitalize on rising demand from consumers shopping on phones, an area where BGC Partners LP says the company has an early lead. Chief Executive Officer John Donahoe, halfway through a three-year turnaround, also is seeking ways to use EBay’s $5.4 billion in cash and marketable securities to spur growth. The company bought RedLaser, a barcode scanner app, in June.
“Our goal is to take our leadership position in mobile commerce and keep going, and keep everyone else in the tail lights,” Yankovich said in an interview.
On Apple Inc.’s recommendation, EBay started working with Critical Path while developing an app for the iPhone that debuted in July 2008. Since then, Portland, Oregon-based Critical Path has helped EBay with apps for its StubHub and classifieds units.
EBay, based in San Jose, California, is on pace to do about $2 billion in gross sales this year through its mobile apps, Donahoe said last month.
Critical Path’s team of engineers will stay in Portland, said Steve Romero, the company’s founder.
“If we were going to get behind anyone, getting behind the dominant mobile e-commerce player was the way to go,” Romero said.
EBay fell 37 cents to $30.38 at 1:44 p.m. New York time in Nasdaq Stock Market trading. The stock had gained 31 percent this year before today.
--Editors: Nick Turner, Lisa Wolfson
To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
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Dec. 15 (Bloomberg) -- EBay Inc. acquired Critical Path Software Inc., a developer of smartphone applications, to accelerate its lead in mobile commerce.
The acquisition doubles the size of EBay’s mobile team, which has dozens of engineers, Steve Yankovich, a vice president at the company, said today. Terms weren’t disclosed for the deal, which EBay called a “talent acquisition.”
EBay, the largest e-commerce marketplace, is trying to capitalize on rising demand from consumers shopping on phones, an area where BGC Partners LP says the company has an early lead. Chief Executive Officer John Donahoe, halfway through a three-year turnaround, also is seeking ways to use EBay’s $5.4 billion in cash and marketable securities to spur growth. The company bought RedLaser, a barcode scanner app, in June.
“Our goal is to take our leadership position in mobile commerce and keep going, and keep everyone else in the tail lights,” Yankovich said in an interview.
On Apple Inc.’s recommendation, EBay started working with Critical Path while developing an app for the iPhone that debuted in July 2008. Since then, Portland, Oregon-based Critical Path has helped EBay with apps for its StubHub and classifieds units.
EBay, based in San Jose, California, is on pace to do about $2 billion in gross sales this year through its mobile apps, Donahoe said last month.
Critical Path’s team of engineers will stay in Portland, said Steve Romero, the company’s founder.
“If we were going to get behind anyone, getting behind the dominant mobile e-commerce player was the way to go,” Romero said.
EBay fell 37 cents to $30.38 at 1:44 p.m. New York time in Nasdaq Stock Market trading. The stock had gained 31 percent this year before today.
--Editors: Nick Turner, Lisa Wolfson
To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
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