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PART I
FORWARD LOOKING STATEMENTS
This report contains statements that involve expectations, plans or intentions (such as those relating to future
business or financial results, new features or services, or management strategies). These statements are forward-
looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these
forward-looking statements by words such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “esti-
mate,” “intend,” “plan” and other similar expressions. You should consider our forward-looking statements in light
of the risks discussed in “Item 1A: Risk Factors,” as well as our consolidated financial statements, related notes,
and the other financial information appearing elsewhere in this report and our other filings with the Securities and
Exchange Commission, or the SEC. We assume no obligation to update any forward-looking statements.
ITEM 1: BUSINESS
Overview
eBay Inc. was formed as a sole proprietorship in September 1995 and was incorporated in California in May
1996. In April 1998, we reincorporated in Delaware and in September 1998 we completed the initial public offering
of our common stock. Our principal executive offices are located at 2145 Hamilton Avenue, San Jose, California
95125, and our telephone number is (408) 376-7400. When we refer to “we,” “our” 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 online marketplace located at
www.ebay.com and its localized counterparts. When we refer to “PayPal” we mean the online payments platform
located at www.paypal.com. When we refer to “Skype” we mean the Voice over Internet Protocol, or VoIP,
offerings provided by our subsidiary Skype Technologies S.A.
Our purpose is to pioneer new communities around the world built on commerce, sustained by trust and
inspired by opportunity. To achieve our purpose, we operate three primary business segments: Marketplaces,
Payments and Communications. We provide online marketplaces for the sale of goods and services, online
payments services and online communication offerings to a diverse community of individuals and businesses. Our
Marketplaces segment enables online commerce through a variety of platforms, including the traditional eBay.com
platform and our other online platforms, such as Shopping.com, classifieds websites and Rent.com. The wide array
of websites that comprise our Marketplaces segment bring together millions of buyers and sellers every day on a
local, national and international basis. Our Payments segment, which consists of PayPal, enables individuals and
businesses to securely, easily and quickly send and receive payments online. Our Communications segment, which
consists of Skype, enables VoIP calls between Skype users, and also provides Skype users low-cost connectivity to
traditional fixed-line and mobile telephones.
Marketplaces
Our Marketplaces segment is comprised of online commerce platforms that enable a global community of
buyers and sellers to interact and trade with one another. Our goal is to create, maintain, and expand the
functionality, safety, ease-of-use and reliability of our online commerce platforms while, at the same time,
supporting the growth and success of our community of users. On any given day, there are more than a hundred
million items available through auction-style and fixed-price trading.
Marketplaces Value Proposition
We seek to attract buyers and sellers to our community by offering:
Buyers Sellers
• Selection • Access to broad markets
• Value • Cost effective marketing and distribution
• Convenience • Ability to maximize selling prices
• Entertainment • Opportunity to increase sales
1