Does Amazon Own eBay In 2024? Here‘s the Real Story
Wondering if Amazon, the ecommerce giant valued over $1 trillion, has gobbled up eBay? It‘s easy to see why this question keeps coming up. But the truth is that 15 years after acquisition talks first surfaced, the two companies remain fierce competitors with very different business models.
Let‘s examine the persistent rumors more closely and why we likely won‘t see an Amazon and eBay merger any time soon.
The Case for Why Amazon Might Acquire eBay
On the surface, it‘s easy to understand why many expect Amazon to acquire eBay:
Amazon wants to expand its seller marketplace. While Amazon sells its own inventory, over 50% of units sold on Amazon are actually by 3rd party sellers. eBay could provide a huge influx of new sellers.
eBay‘s stock value has stagnated. eBay‘s market cap hovers around $30 billion compared to Amazon exceeding $1 trillion. Investors may eventually pressure eBay to sell.
Regulatory barriers faced by Amazon. As Amazon captures more ecommerce share year-over-year, anti-trust scrutiny ramps up. Acquiring eBay could provide Amazon access to more customers amidst regulatory pressures.
However, looking closer reveals the situation is far more nuanced. Let‘s look at 3 major reasons why Amazon buying eBay might not occur.
3 Reasons Why Amazon Likely Won‘t Buy eBay
| Reason | Overview |
|---|---|
| Business Model Mismatch | eBay connects buyers and sellers like an auction house, not selling own inventory. |
| Seller Ecosystem Differences | eBay sellers often small businesses vs Amazon‘s mix of large enterprises. |
| High Anti-Trust Risk | Combined 40-50% US ecommerce share would draw heavy regulatory opposition. |
Additionally, culturally eBay likely wants to remain independent and competitive versus Amazon. While the possibility can‘t be ruled out entirely, an acquisition seems unlikely right now.
What Would Happen If Amazon Acquired eBay?
If regulators allowed an acquisition, the combined seller base would be staggering. But many eBay sellers prefer its auction model and might leave the merged company. Still, Amazon would gain increased scale, especially internationally where eBay retains higher market share compared to the US.
For consumers though, prices could rise as competition decreases between these ecommerce giants. So from a pricing standpoint, consumers benefit more from Amazon and eBay staying independent rivals.
Could New Leadership Change Direction?
2021 saw new CEOs take over at both corporations: Andy Jassy at Amazon and Jamie Iannone at eBay. Some speculate leadership changes could restart acquisition talks if growth stalls.
However, for now, both CEOs seem focused on evolving their brands through in-house innovation versus mergers. Unless external pressures like plateauing sales arise, the companies seem on independent paths forward focused on customers, not each other.
The Bottom Line
"While acquisition rumors have circulated for years, don‘t expect an Amazon and eBay merger anytime soon given vastly differing business models and regulatory hurdles."
So in 2024 and likely for years to come, no – Amazon does not own eBay! Both companies continue operating independently to meet varying customer needs as they have for over 25 years.
