Here's a surprise. Bill Me Later, an online payment processor purchased by eBay saw credit losses reach their highest level, 8.75% during the fourth quarter of 2008. The credit loss for the period was the highest rate recorded by the newly acquired company. Imagine that.
Some analysts had doubted whether eBay would benefit from the acquisition.
However, Bob Swan, chief financial officer at San Jose, eBay, stated that the rate was in line with expectations and “much less than at other credit issuers.”
Editor's Note: Say again? They expected credit losses to rise, thus they expected it to lose money? I guess that was the underlying reason they bought them for nearly $1 billion. As I said in a post back when they were acquired, the only winner here is the Bill Me Later shareholders who were happy to be paid immediately.
Personally, I expect the 8.75% rate to surpass 10% for Q1 2009 for Bill Me Later, which "might" cause them to re-brand as "MightPay." I wonder if that's in line with what Bob Swan's expectations are. It makes you wonder how much they would have paid if they "expected" it to "save the day."
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