eBay 2000 Annual Report Download - page 6

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PART I
Item 1: Business
This Annual Report on Form 10-K contains forward-looking statements based on our current expecta-
tions about our company and our industry. You can identify these forward-looking statements when you see us
using words such as ""expect,'' ""anticipate,'' ""estimate'' and other similar expressions. These forward-looking
statements involve risks and uncertainties. Our actual results could diÅer materially from those anticipated in
these forward-looking statements as a result of the factors described in the ""Risk Factors'' section of
Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in
this report. We undertake no obligation to publicly update any forward-looking statements for any reason,
even if new information becomes available or other events occur in the future.
Corporate Background
eBay Inc. was formed as a sole proprietorship in September 1995, and was incorporated in California in
May 1996. In March 1998, we reincorporated in Delaware and completed our initial public oÅering in
September 1998. Our principal executive oÇces are located at 2145 Hamilton Ave., San Jose, California,
95125, and our telephone number is (408) 558-7400. When we refer to ""we'' or ""eBay'' in this Annual Report
on Form 10-K, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well
as all of our consolidated subsidiaries. When we refer to ""eBay.com'', we mean the U.S.-based dynamic
pricing online trading platform located at www.ebay.com.
The Company
eBay owns and operates eBay.com, which, based upon the aggregate value of goods traded, is the world's
largest and most popular online marketplace. Our mission is to develop a global online trading platform that
will help practically anyone buy or sell practically anything.
eBay pioneered online personal trading by developing a Web-based community in which buyers and
sellers are brought together in an eÇcient and entertaining format to buy and sell items such as collectibles,
automobiles, high-end or premium art items, jewelry, consumer electronics and a host of practical and
miscellaneous items. The eBay dynamic pricing (i.e. auction-style) format permits sellers to list items for sale,
buyers to bid on items of interest and all eBay users to browse through listed items. eBay's service is fully
automated, topically arranged, intuitive and easy to use.
As of March 1, 2001, through our wholly-owned and partially-owned subsidiaries and aÇliates, we
operated dynamic pricing online trading platforms in the United States, Germany, the United Kingdom,
Australia, Japan, Canada, France, Austria, Italy and South Korea. In February 2001, we announced an
agreement to acquire 100% of the outstanding stock of iBazar S.A., a leading provider of online trading
services in Europe and Brazil. With the completion of this acquisition, currently scheduled for the second
quarter of 2001, we expect to broaden our international reach in online trading to include Spain, the
Netherlands, Belgium, Portugal, Sweden and Brazil. eBay also owns and operates Half.com, which provides
an alternative, Ñxed-price format for trading books, recorded music, movies (VHS, DVD) and video games.
Through our 65 percent owned subsidiary Billpoint Inc., we also facilitate online trading transactions by
providing sellers and buyers with the necessary tools to conduct person-to-person credit card and electronic
check payments safely over the Web.
From December 31, 1998 to December 31, 2000, the number of registered eBay users grew from
approximately 2 million to approximately 22 million. eBay users listed over 79 million items for sale in more
than 8,000 categories during the fourth quarter of 2000, up from 41 million items in the fourth quarter of 1999.
This includes items listed on eBay.com, eBay's international sites and items sold on Half.com. The aggregate
value of goods sold, or gross merchandise sales, on the various eBay and Half.com sites in the fourth quarter of
2000, was approximately $1.6 billion, up from $901 million in the fourth quarter of 1999. In 2000, eBay users
listed more than 264.7 million items and completed transactions with an aggregate value of more than
$5.4 billion.
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