Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



eBay's on the Acquisition Path

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

eBay (Nasdaq: EBAY  ) is doing some holiday shopping of its own. is reporting that the company behind the leading auction website and the popular PayPal platform is buying for $75 million.

It seems a surprising choice, at first. Milo has been called the anti-Amazon for its ability to send traffic to bricks-and-mortar merchants. The local shopping engine scours prices and availability in real time for area stores, arming Web-savvy consumers with the ability to get what they want in a manner of minutes, instead of days through e-commerce.

Wait a minute. Won't eBay be sending potential buyers away from its auction sellers? PayPal's penetration in cyberspace is impressive, but the same can't be said for physical retail. Isn't Milo really more of the anti-eBay than it is an enemy of (Nasdaq: AMZN  ) , shooing buyers away from Web-based auctions and financial transactions?

Buying Milo begins to make a lot more sense when you realize that Milo is unlikely to be incorporated into itself. Just as eBay's free classified websites are incremental to eBay's flagship business, most visitors to Milo or eBay won't even realize that there's a corporate connection.

There may still be synergy. If a search for a product on Milo exhausts its selection of 3 million locally available products through 52,000 stores -- including Best Buy (NYSE: BBY  ) , Toys "R" Us, and Target (NYSE: TGT  ) -- a link to the folks selling it through eBay would be a win-win solution.

It would be trickier, but traffic can flow the other way under the right circumstances in a way that would make sure eBay sellers are keeping their prices honest.

Sure, snapping up (Nasdaq: OSTK  ) or the majority stake of MercadoLibre (Nasdaq: MELI  ) that it doesn't already own would be more logical purchases, but eBay already telegraphed a move into physical comparison shopping when it acquired barcode scanning app giant RedLaser this summer.

Milo makes sense, especially at a price point that provides a sharp contrast to Google's (Nasdaq: GOOG  ) Groupon insanity.

What should eBay buy next? Share your thoughts in the comments box below.

Best Buy and Google are Motley Fool Inside Value selections. Google and MercadoLibre are Motley Fool Rule Breakers picks., Best Buy, and eBay are Motley Fool Stock Advisor recommendations. Motley Fool Options has recommended buying calls on Best Buy. Motley Fool Options has recommended a bull call spread position on eBay. The Fool owns shares of Best Buy and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Longtime Fool contributor Rick Munarriz is a satisfied eBay user with 178 positive feedbacks to show for it. He does not own shares in any of the companies in this story. He is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 02, 2010, at 8:09 PM, phoebe44 wrote:

    This is exactly the type of thing that is sending e-bay sellers away in droves. Pretty soon, ebay will be just another site for the Targets, Wal-Marts, etc. and all the prices will be the same - so not much need for Milo -

    IMO, Milo will drive customers away from ebay to Amazon and and the many new sprouts who are drooling to take ebays sellers. Unless ebay specifically controls whose prices Milo can display, it's good-bye ebay and Milo.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1387310, ~/Articles/ArticleHandler.aspx, 10/25/2016 10:39:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
AMZN $835.18 Down -2.91 -0.35% CAPS Rating: ****
BBY $39.26 Down -0.20 -0.51%
Best Buy CAPS Rating: *
EBAY $29.05 Down -0.17 -0.58%
eBay CAPS Rating: ****
GOOGL $828.55 Down -7.19 -0.86%
Alphabet (A shares… CAPS Rating: *****
MELI $171.04 Down -1.78 -1.03%
MercadoLibre CAPS Rating: *****
OSTK $14.75 Up +0.20 +1.37% CAPS Rating: *
TGT $67.95 Down -0.31 -0.45%
Target CAPS Rating: ***