It’s tough not to be a fan of anything Meg Whitman does. But EBay’s acquisition of PayPal for $1.5 B in stock (an 18% premium) could be Meg’s first foray into the world of All-Star has beens. Why do CEO’s continue to overpay for ‘strategic’ acquisitions that the academics have proven, by and large, to be value-subtractive? The jury’s still out on this one, but three hours after the market opened, EBAY is down 4 percent.

Leave a Reply