EBay Buys VeriSign Unit for $370 Million

SAN FRANCISCO — Online marketing giant eBay and domain registrar VeriSign announced a strategic alliance Monday that will include eBay’s purchase of VeriSign’s payment processing business.

PayPal, the online payment company eBay bought in 2002 for roughly $1.5 billion, will incorporate VeriSign’s technology into its merchant services, including VeriSign’s password protection technology that is designed to thwart identity theft.

EBay, via PayPal, is expected to shell out $370 million in cash and stock options as part of the deal.

“VeriSign's payment gateway is a market-proven product that perfectly complements PayPal's existing payment services,” Jeff Jordan, president of PayPal, said of the deal. “This acquisition allows PayPal to give customers more choice in payment services.”

VeriSign saw an initial 5.2 percent jump in its stock price following the news, but finished the day only about half-a-percent higher at $20.04. Ebay ended the day up 1.4 percent at $40.46.

Officials at PayPal said they hoped the purchase would expand PayPal’s presence in the merchant services market, a space VeriSign has long dominated. VeriSign’s payment gateway gives merchants several processing and authorization tools that PayPal officials expect to bring an additional $100 million in revenue to the company in the first year alone.

PayPal currently processes around $40 billion in online payments a year.

“The acquisition provides our worldwide merchant base with the benefits of PayPal's already robust payment capabilities,” Stratton Sclavos, chairman and CEO of VeriSign, said.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

TrustyFans Introduces New Blog

Creator directory TrustyFans has introduced an official blog to its site, titled "From Hidden to Hype."

JustFor.fans' Dominic Ford Featured in Wired Magazine

JustFor.fans Founder and CEO Dominic Ford is featured in a new article in Wired Magazine, titled "The Internet Revolutionized Porn. Age Verification Could Upend Everything."

Dr. Charlotte Gaydos Joins ProDx Health Advisory Board

Dr. Charlotte Gaydos has joined the Advisory Board of ProDx Health.

Aylo Fined $5 Million as FTC, Utah Settle Safety Practices Complaint

The Federal Trade Commission and the state of Utah on Wednesday settled a complaint against Aylo, requiring the company to pay a $5 million penalty and implement measures to prevent illegal content from appearing on its sites.

New AI Companion Platform 'Pornstar.love' Launches

Pornstar.love, a new AI companion platform, has officially launched.

Pineapple Support, Stripchat to Host 'Navigating Thoughts of Suicide' Support Group

Pineapple Support and Stripchat are hosting a free online support group to help performers deal with suicidal ideation.

Plaiir Names Cade Maddox as Lead of Creator Relations

Networking platform Plaiir has appointed Cade Maddox as its new lead of creator relations.

Go.cam Launches 'One-Line Integration' Verification Solution

Go.cam has introduced a one-line code integration for age verification.

XBIZ Amsterdam to Debut 'Behind the Lens' Screening Series

XBIZ is pleased to announce the debut of “Behind the Lens,” a new screening series presenting discussions with noted directors, taking place at the upcoming annual European conference, XBIZ Amsterdam.

'White Rabbit' Party Headed for XBIZ Amsterdam

XBIZ is pleased to announce the White Rabbit Party, an XBIZ Amsterdam special event set to take place Wednesday, Sept. 3.

Show More