eBay Inc (NASDAQ EBAY) was quick to respond to a rumor that Google Inc (NASDAQ GOOG) was considering buying a 40% stake in it. The online auction giant’s stock climbed by nearly 5% in very heavy trading volume earlier this morning after three traders claimed that Google could buy a stake.
Shares of eBay shot up after a rumor that Google was about to buy a stake, but they started to retreat after the company denied that rumor. Shortly after the rumor surfaced, an eBay spokesperson said they have not been speaking with Google about a 40% stake.
She said they have had “no conversations with Google” about the search giant buying stake. Google also denied the rumor, according to Benzinga. It was said that activist investor Carl Icahn was behind the deal as a way for Google to better compete with Alibaba and Amazon.com, Inc(NASDAQ AMZN).
Google Inc (NASDAQ GOOG) News: eBay & Google
This morning’s rumor indicated that eBay and Google were waiting to announce the stake until after more details about Apple Inc. (NASDAQ AAPL)’s new Pay service are unveiled. That’s according to Tweeters, which cites an unnamed source. The buy price was said to be $68 per share or $85 billion.
Reuters reports that options volume also rose significantly, spiking to 2.4 times the normal level. The markets recorded 98,000 puts and 26,000 calls being traded as of late this morning.
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Google Inc Financial News (NASDAQ GOOG)
In addition to the Google rumor, The Street also suggests that investors may be positive on eBay because of its plans to start running ads on its mobile app. The online auction company said it plans to do that in the fourth quarter. Currently eBay users spend 150 minutes using its app every month. That’s triple its closest rival, according to the company’s North America display ad chief.
eBay management said that they can tailor their ads better because users will be using just one login on all of their devices.
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