Why Did PayPal File For An IPO?

from the so-many-questions dept

A lot of people were very surprised when PayPal filed for an IPO a few weeks ago. Now, the theory is that they did so, simply to get their finances out in public so a potential acquirer might be more willing to buy them. The article points out that, as of right now, PayPal doesn’t need any more cash, and they do have a ton of competition from bigger, more established players – but no one has the market share that PayPal does. This makes them a good acquisition target, and by filing to go public, they may help nudge the right acquirer into making a move.

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Comments on “Why Did PayPal File For An IPO?”

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sb says:

No Subject Given


Person 1 pays person 2 $100 via paypal.
Person 2 requests the check cut and mailed to him.
Person 1 then refustes payment, saying he got a defective product, or whatever. so person 1’s Credit card company refuses payment to paypal. Yet funds have already been paid to person 2.
Does paypal have to then recharge/sue person 1 for the money?

Oliver Wendell Jones (profile) says:

Re: No Subject Given

If you have used PayPal recently, you’ll find that they prefer you transfer money from your bank account rather than use your credit card, as there isn’t as much legally you can do for a bank transfer, as opposed to the well known protection you get for using a credit card.

If the person requests a check, then PayPal has a valid address where they can find the person, plus the person has to sign the check to cash it, so it’s much more difficult for them to dispute ever receiving the money.

If you are truly concerned about this, use one of the escrow services to help protect you, or make sure you use a credit card (and not a debit card!) to pay for the item.

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