Ebay Dividend Policy

eBay Dividend Policy

I. Background Report: eBay Inc.

Introduction

eBay Inc. (“eBay”) (NASDAQ:EBAY) was founded in 1995 and operates the world’s largest online trading community with more than 100 million active users globally (as of Q4 2011). Its online marketplace helps connect sellers, buyers and small businesses locally, nationally and internationally through their websites. eBay effectively resolves any difficulties individuals and businesses might experience trying to reach the end user by offering efficient e-commerce, platforms and online payment solutions.

PayPal enables individuals and businesses to securely, easily and quickly send and receive online payments. GSI facilitates ecommerce, multichannel retailing and interactive marketing for global enterprises. X.commerce brings together the technology assets and developer communities of eBay, PayPal and Magento, an ecommerce storefront platform, to support eBay Inc.'s mission of enabling commerce. StubHub, the world's largest ticket marketplace, and eBay classifieds sites, together have a presence in more than 1,000 cities around the world.

eBay currently employs 27,770 people and has its headquarters in San Jose, California.

The company’s 12 directors include 10 outside directors plus two inside directors, the Chairman and founder Pierre Morad Omidyar and eBay’s Chief Executive Officer John J. Donahoe.

Main Business Lines and Trade Marks

eBay Inc. consists of a total of 42 trademark products and services under the Business and Public Services sector, the Consumer and Technology sectors and its main strategic focus: the Professional Services under Business Services.

Up to 2009 the company’s main business lines were the three following business segments: marketplaces, payments, and communications. Its communications segment Skype, which provided internet communication services to its users was sold to an investor group. After the divestiture of Skype, eBay today continues...