Tom Reese/Paul Rubillo, Dividend.com
Shares of EBay (EBAY) are down slightly in early trading after the company said it will make a cash tender offer of $24 a share to purchase all outstanding common shares and American depository shares of Gmarket, South Korea's top online marketplace.
EBay's management said the proposed acquisition will allow it to build a platform for growth in Korea but also in regions throughout Asia and beyond. This news follows the company's announcement yesterday it would spinoff Skype through an initial public offering.
The Bottom Line
Shares of eBay are way off of all-time highs of $57 hit in December of 2004. The stock has technical support in the $10 price area. If the shares can resume its recent rebound, we see overhead resistance around the $18 price mark. We do not currently rate this non-dividend paying stock, but we do follow this internet giant closely.
eBay Inc. (EBAY) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
