Ebay Repatriates $6 Billion In Cash, Bucking Trend Set By Apple

Apr 29 2014, 4:18pm CDT | by

Apple is doing everything it can to avoid the hefty tax associated with bringing its gobs of foreign cash home to America. Ebay appears to be doing just the opposite.

In the company’s first quarter earnings report, Ebay beat the consensus Wall Street estimates, but shares fell 3% in after hours trading as investors scratched their heads. Ebay announced that it would repatriate $6 billion in foreign earnings to increase available U.S. cash and enhance “financial flexibility.”

The cash move will incur an approximately $3 billion tax charge — the likes of which most international companies have tried to avoid. Corporate executives have long lobbied Washington for a “tax holiday” to repatriate cash with no penalty. Most recently, Apple said that it would borrow $12 billion rather than incur the tax to bring home its foreign money. It isn’t immediately clear why Ebay took a different route.

“We are committed to delivering sustainable shareholder value and focusing on what matters most to our investors. We are executing our growth plans, capitalizing on the synergies in our portfolio and aggressively executing our $5.0 billion share buyback program,” CEO John Donahoe said in a statement.

In Ebay’s first earnings statement after it struck a peace deal with Carl Icahn, the company posted $0.70 earnings per share vs. $0.67 estimated and $4.26 billion revenues vs. $4.23 billion estimated.

PayPal was once again Ebay’s strongest segment, growing net total payment volume by 27% and net revenue by 19% year over year. Revenues on the marketplace side were up 10%.

Follow Brian on Facebook and Twitter.

Which Corporations Pay The Highest Taxes?

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Power outage across Bangladesh as national grid collapses
Dhaka, Nov 1 (IANS) Power outages Saturday hit several places in Bangladesh, including the capital Dhaka, due to the collapse of the national grid.
 
 
Drugs to abet cancer cells suicide found
London, Nov 1 (IANS) British scientists have found a drug combination that can trigger the self-destruct process in lung cancer cells -- paving the way for new treatments.
 
 
Climate change threatens global health security: UNEP
San Juan, Nov 1 (IANS/EFE) The rapid propagation in recent years of infectious diseases such as Malaria, Chikungunya and even Ebola is one more example of how climate change threatens global health security.
 
 
US-Japan joint rain radar mission to end next year
Washington, Nov 1 (IANS) After 17 years of groundbreaking 3-D images of rain and storms, the joint NASA and Japan Aerospace Exploration Agency Tropical Rainfall Measuring Mission (TRMM) will come to an end next year, the US space agency said in a statement.
 
 
 

Latest from the Network

Circus tiger kills girl in China
Beijing, Nov 1 (IANS) A circus tiger killed a girl in China's southwestern Chongqing Municipality Friday, according to the theme park. The eight-year-old girl was attacked by the tiger when she slipped into a closed...
Read more on Politics Balla
 
Another Burkina Faso army officer seizes power
Ouagadougou, Nov 1 (IANS) Burkina Faso's senior military officer Isaac Zida, who was in command of the presidential guard, Saturday announced he has seized power as head of state during the interim period. "I now...
Read more on Politics Balla
 
Bharat-Nepal Shiksha Maitri Karyakram launched
Kathmandu, Nov 1 (IANS) In the line with the announcement made by Indian Prime Minister Narendra Modi in the first week of August, the "Bharat-Nepal Shiksha Maitri Karyakram" for Nepalese students pursuing...
Read more on Politics Balla
 
1,273 people killed in Iraq violence in October: UN
Baghdad, Nov 1 (IANS) A total of 1,273 Iraqis were killed and 2,010 others were injured in terrorist attacks and violence in October in Iraq, according to a statement issued Saturday by the UN Assistance Mission for...
Read more on Politics Balla
 
Sarah Hyland wants funny boyfriend
Sarah Hyland wants a boyfriend who can make her laugh. The 'Modern Family' actress, who recently secured a three-year restraining order against ex-boyfriend Matthew Prokop after claiming he abused her for four years...
Read more on Celebrity Balla
 
Kim and Kanye name new home after Downton Abbey property
Kanye West and his wife Kim Kardashian West have named their new home after the property from 'Downton Abbey'. The loved-up couple - who wed in Florence, Italy in May, and have one-year-old daughter North West together...
Read more on Celebrity Balla
 
Nicki Minaj slammed for arriving six hours late for photoshoot
Nicki Minaj has been dubbed ''incredibly rude'' after turning up six hours late for a photoshoot. The 31-year-old rapper arrived at 2am to shoot photos for a future issue of Billboard magazine in New York, and has since...
Read more on Celebrity Balla
 
Danny DeVito doesn't like One Direction, despite being in their video
Danny DeVito doesn't like One Direction, despite appearing in their video for 'Steal My Girl'. The pint-sized 'Matilda' actor featured in a clip for their new single which was unveiled last week, but explained that he...
Read more on Celebrity Balla
 
Power outage across Bangladesh as national grid collapses
Dhaka, Nov 1 (IANS) Power outages Saturday hit several places in Bangladesh, including the capital Dhaka, due to the collapse of the national grid. Reports of power cuts were coming in from several other places...
Read more on Business Balla
 
Space plane crash: Sir Branson 'shocked' but to 'persevere'
New York, Nov 1 (IANS) Richard Branson, founder of the Virgin Group, was "shocked and saddened" by the news of the Virgin Galactic passenger space plane crash but said that he would "persevere". The space plane...
Read more on Politics Balla