eBay to acquire Zong for $240 million

Mobile payments startup Zong will be acquired by eBay for $240 million, the entire amount to be paid in cash.

eBay sees Zong as complementary to PayPal, its subsidiary. PayPal also, in the last couple of years, has been pushing hard to make their mark in the mobile payments market.

PayPal President Scott Thompson has said that PayPal makes money work better for users, no matter which device they use and no matter how they want to make their payments.

PayPal has more than 8 million mobile users presently and the expectations are that it will be able to generate more than $3 billion in revenue in 2011. At the same time, Zong has established connections with more than 250 mobile operators worldwide.

The combination of these two could concoct a potentially powerful result and could prompt some of the other major players in this field to complete their ongoing acquisition processes in a hurry.


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