[Archive]

Posted By: Elliot

I don't want to turn this into a financial forum, but to clarify, eBay is buying Paypal with eBay shares, this transaction will not change the amount of cash that eBay has on it's balance sheet. It will only have a negative effect on eBay's share price if Paypal stock is overvalued in relation to eBay stock, if they are both overvalued the same amount, it is similiar to the story about the $10,000 cat.