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eBay buys PayPal for $1.5Billion Online auctioneer to expand with purchase of Internet bill payment system; lifts 2Q profit estimate. eBay said Monday it will acquire Internet payment service PayPal in an effort to simplify online buying and selling and also bumped up earnings guidance for the second-quarter by 2 cents a share. The online auction company said it will swap 0.39 share of its stock for each outstanding share of PayPal. Based on eBay's price Friday, the acquisition is valued at $1.5 billion. According to preliminary estimates, the purchase price also is expected to include approximately $18 million for acquisition-related costs. eBay said the company initially will incur incremental charges for stock-based compensation and amortization of about $4 million and $9 million per quarter, respectively. eBay spokesman Kevin Pursglove said he could not immediately discuss how many quarters will be affected by the charges.
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