eBay Bought Milo.com For $75 Million Cash!

Posted by on Dec 3rd, 2010 and filed under Featured, Tech Stuff. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

It looks like companies are relying on companies to support them in case of another major economic crisis. This is the case of eBay, where they bought Milo.com for $75 million—in cold cash!

Milo.com is search engine for shopping where it helps you find what items is in-stock in local stores. It was founded in 2007 with the 24-year-old Jack Abraham as its CEO, and is based on Palo, Alto.

In terms of e-commerce, this is actually a trend where small retailers do not need to build another website to market themselves to millions of Internet users. According to eBay’s CEO, John Donahoe, it is looking for ways to use the $5.4 billion cash that they have earned so that they can get more customers and to narrow the growth gap with Amazon. Ebay is so far the second most-visited US e-commerce store.

Since eBay owns shopping.com, buying Milo.com makes it more convenient for online shoppers to look for their items in eBay. And also, this is more profit for the online store. With this deal, eBay will be able to provide online shoppers access to millions of products from 50,000 stores from all over 50 US states.

According to eBay’s senior vice president Mark Carges, “Local commerce companies like Milo are blurring the lines between in-store and online shopping”. It will also help eBay add more products to its online store and help online customers find the best prices in different stores.

Hopefully, this deal will indeed increase eBay’s chances in e-commerce since more Internet users now prefer online shopping than in-store. I think the past Black Friday and Cyber Monday just proves that.

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