Potentially more diversification for eBay
The potential price for a deal is in the range of $75 million, these people say. One of the people said that no final agreement has been reached and the talks could fall apart. An eBay spokesman said the company doesn't comment on "rumors or speculation."
Still, eBay's interest in the closely held San Francisco company is the latest sign of its efforts to expand beyond its maturing online-auction business through acquisitions. For instance, the company in February paid $292.4 million for online-tickets seller StubHub Inc. EBay expects that business to generate revenue of $105 million to $120 million in 2007.
The company's three Canadian co-founders funded its growth themselves until March 2006, then took funding from a handful of angel investors, including Google Inc. director Ram Shriram and Lotus Development Corp. founder Mitch Kapor.