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You never know. It may work.
Companies tend to integrate so that they can get their share in the market, reduce operating costs, expand in new areas, unify common products, and increase revenues and profit.
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The merger and acquisitions have been heading down since 2021, when more than 33,000 deals were recorded. President Donald Trump’s last tour of the definitions can reach the activity of integration and purchase strongly, in the first place by creating uncertainty, raising costs and supply chains
However, analysts at Pipe Sandler recently about a potential integration process between an online auction platform EBY ((EBay website)) Another prominent company in e -commerce, ETSY, which was traveling in a difficult period.
ETSY CEO: 2024 was a difficult year
etsy ((etsy)) A platform for selling manual or antique elements and literal supplies, passing through some difficult times.
Brooklyn, New York, the company’s shares have decreased by 9.2 % since January and about 27 % from last year. ETSY is scheduled to report the final results of next month,
In February, ETSY, which reported the fourth quarter, decreased by 6.8 % in total goods sales on an annual basis to $ 3.7 billion. The active sellers decreased by 10 % to 8.1 million.
Related: Analysts to reformulate the EBY share price on economic uncertainty
The total goods sales indicate the total value of everything that is sold through a platform or market over a specific period. It is a major measure to understand the company’s sales scale and its growth.
Joshua Silverman, president of ETSY and president of analysts in February, said last year was a challenge for ETsy, the year in which he was “gave performance to the higher standards that we keep for ourselves as a market leader for the private.”
He added: “We are disappointed as we know that you are working with tremendous urgency and focusing on attaching the ETSY MARKETPLACE GMS market performance.”
The company has made many executive changes, including the appointment of KRUTI Patel Goyal and ETSY president. She was the CEO of Etsy’s Depop Resale.
“The growth of the last e -commerce has been deviant towards those who offer low prices and fast delivery, and this is a game that we are unlikely to win,” said Silverman. “We also realize that consumers are shopping and spending their time differently, with more competition than ever to participate.”
In the discussion of the economic environment, Silverman said, “Certainly, consumers will not hurt to feel more confident and feel that they are not trying to pinch every one penny.
“Therefore, the presence of more consumer confidence will undoubtedly help,” he added. “However, we focus heavily on doing what we can do within our strength, and I think we have a lot of agencies here.”
Analyst: Ebay-etse meger is an elegant solution
Piper Sandler examined an ETSY-Plus-EAY in the light of ETSY, as he was retarded for three years, and the total goods sales declines were hurt.
Ebay competes with the market share and increased competition. The company has had 132 million active users in 2024, flattened with the previous year, and active users have stagnated over the past two years.
Ultimately, merger and purchases can be an elegant solution to growth problems, because ETSY is a unique platform that needs hesitation, data and scale, while EBay has the three and is invested in artificial intelligence.
The investment company said that if ETSY, enabled from the EBY scale, it is likely that the value is unarmed. Looking at 134 million active buyers from EBY, PIPER SANDLER estimates the pro -Forma buyer’s base. It will be about 174 million, or 60 % of Amazon amzn Jupiter base.
While Piper Sandler sees a relatively low possibility for an explicit integration treatment, ETSY may face a difficult time to return to an independent basis, as the company indicates.
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PIPER estimates that Forma Combined Ebay’s value is $ 85 per share.
In general, the company said, the deal will be logical for Libyan.
In addition, the Wells Fargo reduced the company’s price on ETSY to $ 46 from $ 47 and confirmed the low -weight classification on the shares of the handicraft market online.
The company said it expected the Q1 results in the line. But it fluctuates estimates and sees increasing risks to unanimity estimates in the second quarter and the second half is compatible due to the total economic uncertainty.
The company said that trying to convert the buyer’s behavior on ETSY during a period of consumer pressure as a complex endeavor.
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