eBay 2001 Annual Report Download - page 77

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
On February 24, 2000, Billpoint and Wells Fargo Bank (""Wells Fargo'') entered into an agreement
that made Wells Fargo the exclusive provider of Internet payment services of domestic transactions for
Billpoint's customers. The service agreement expires February 28, 2007. At the same time, Billpoint
reincorporated in Delaware and sold 350 shares of common stock and 1,399,965 shares of Series A
preferred stock to Wells Fargo, which represented approximately 35% ownership in Billpoint. Simultane-
ously, we exchanged 25,999,350 of Billpoint's common shares for 2,599,935 shares of Series A preferred
stock. We continue to consolidate the Ñnancial statements of Billpoint and reÖect a minority interest for
the equity interest of Wells Fargo. See ""Note 17 Ì Subsequent Events.''
ButterÑelds
On May 28, 1999, eBay acquired ButterÑelds Auctioneers Corporation, a Delaware corporation and all
aÇliated entities under common control including ButterÑeld's Credit Corporation, Inc., 111 Potrero
Partners, LLC and HBJ Partners, LLC (collectively ""ButterÑelds''). ButterÑelds was established in 1865
and is the largest auction house headquartered on the West coast specializing in Ñne art, antiques and
collectibles with sales galleries in San Francisco and Los Angeles and representatives located throughout
the Midwest and Western U.S.
ButterÑeld's Credit Corporation, Inc. (""BCCI'') is a wholly owned subsidiary of ButterÑelds and is
incorporated in California. BCCI operates as a Ñnancing corporation whose sole purpose is serving
ButterÑelds' clients.
111 Potrero Partners, LLC (""111 Potrero'') is a limited liability corporation organized in May 1996.
111 Potrero owns several commercial properties located in San Francisco and Los Angeles, which are
currently occupied by ButterÑelds and third parties.
HBJ Partners, LLC (""HBJ'') is a limited liability corporation organized in California in September
1996. HBJ owns several commercial properties located in San Francisco, which are currently occupied by
ButterÑelds and third parties. HBJ also has general partnership interests in 6700 Cherry Ave. Partners,
17600 Santa Fe Ave. Partners and 2959 Victoria Street. As of December 31, 2001, ownership interests in
the above partnerships were 98%, 94% and 85%, respectively.
The aggregate consideration exchanged for the acquisition was 2,654,740 shares of eBay common
stock. The acquisition was accounted for as a pooling of interests. In April 1999, ButterÑelds withdrew its
registration statement for its initial public oÅering. Accordingly, in the second quarter of 1999, eBay
recorded a charge of approximately $2.6 million related to the costs of the withdrawn oÅering.
alando.de.ag
On June 15, 1999, we acquired all of the outstanding stock of alando.de.ag (""alando''). alando began
operations on February 19, 1999 as an online trading community in Germany. The aggregate consideration
exchanged for the acquisition was 632,000 shares of eBay common stock. The acquisition was accounted
for as a pooling of interests.
eBay Japan
On February 17, 2000, eBay Japan Inc., a wholly owned subsidiary of eBay, entered into a
shareholder and marketing services agreement with NEC Corporation. In accordance with the shareholder
agreement, NEC acquired 30% of eBay Japan. In accordance with the marketing agreement, NEC
provided marketing and services to eBay Japan in an eÅort to deliver a minimum level of conÑrmed
registered users. As compensation for the marketing and other services performed by NEC, eBay Japan
paid NEC an annual up-front fee of approximately $1.5 million. On July 18, 2001, eBay purchased the
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