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Halftime: EBay CEO on What GSI Deal Brings

Monday, 28 Mar 2011 | 1:53 PM ET

EBay's plans to buy e-commerce company GSI Commerce for $1.96 billion in cash will help draw more buyers and sellers to its online marketplaces, eBay CEO John J. Donahoe said on Monday's "Fast Money Halftime Report."

GSI will bring eBay 180 of the largest retailers that need help getting online, Donahoe said. GSI owns Web businesses such as Rue La La, which offers one-day-only deals to its members, and ShopRunner, a members-only online shopping service that offers free shipping. GSI also provides technology, payment processing and customer care services for e-commerce sites.

Call to the Floor: eBay CEO
Discussing eBay's snapping up of e-commerce and digital marketing company GSI commerce, with John Donahoe, eBay president/CEO.

Donahoe said eBay expects to earn $900 million in revenue from GSI this year. In 2012, he expects up to $1.3 billion in revenues from GSI.

GSI will bring additional growth to eBay, which has pointed to its PayPal payments processing unit as its prime growth driver in recent years. PayPal continues to grow, too. Donahoe said select brick-and-mortar merchants will participate in a pilot program, which allows them to complete transactions via PayPal. While only a few physical stores will be involved in the pilot program, Donahoe thinks it has "enormous potential."

"The line between online and off-line is blurring and that's what's causing retailers in the off-line world to embrace PayPal and look for help about how they can grow their businesses and that's why we bought GSI today, to further that aim," Donahoe said.

EBay offered GSI shareholders $29.25 per share, a 50.9 percent premium over its closing price on Friday. The "huge" premium took options trader Pete Najarian by surprise. The optionMONSTER.com co-founded thinks the stock has more upside than downside going forward.

Brian Kelly, founder of Kanundrum Capital, owns eBay shares. He is pleased with the deal and will continue to be long the stock.

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POPS & DROPS

Midday Pops & Drops
The Fast Money traders weigh in on the midday market movers.

The "Fast Money" traders on Monday weighed in on some of the more notable market movers.

Check out the video to see their commentary.

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CALL TO THE FLOOR: TOLL BROTHERS

Has the housing market finally hit bottom? After all, the National Association of Realtors on Monday said pending home sales unexpectedly climbed 2.1 percent in February.

To better understand what's happening in the housing market, "Fast Money" spoke with Toll Brothers CEO Doug C. Yearley, Jr.

Call to the Floor: Toll Brothers CEO
Insight on whether the housing market has finally bottomed, with Douglas Yearley, Toll Brothers CEO. The market is about the same as last year, says Yearley, but some markets are definitely better than others.

Watch the video to see the full interview.





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Trader disclosure: On Mar. 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian Owns (AAPL), (PFE), (TEVA), (TCK), (AKAM), (GE), (C) and (MS). Pete Najarian Owns (UNP) Calls. Pete Najarian Owns (BTU) Calls. Pete Najarian Owns (CNX) Calls. Pete Najarian Owns (HUN) Calls. Pete Najarian Owns (ICO) Calls. Pete Najarian Owns (RIMM) Calls. Pete Najarian Owns (WNR) Calls. Pete Najarian Owns (DLTR) Calls. Pete Najarian Owns (F) Bonds. Pete Najarian Owns (ALU) Bonds. Steve Grasso Owns (AMD), (ASTM), (BAC), (BAC), (C), (CSCO), (D), (JPM), (LIT), (LPX), (MHY), (MU), (NDAQ), Grasso Owns (PFE) and (PRST). Steve Cortes owns (TM), (GS), (CSX), (SDY), (EXC), (SO) and (RIMM). Steve Cortes Is Long USD vs. EUR. Steve Cortes Is Long USD vs. JPY. Steve Cortes Is Short (F). Steve Cortes Is Short (BAC). Steve Cortes Is Short (UNP). Steve Cortes Is Short (DBA). Steve Cortes Is Short Wheat. Steve Cortes Is Short Beans. Steve Cortes Is Short Silver.

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC

STEVE GRASSO
Stuart Frankel & Co. And Its Partners Own (CSCO)
Stuart Frankel & Co. And Its Partners Own (CUBA)
Stuart Frankel & Co. And Its Partners Own (GE)
Stuart Frankel & Co. And Its Partners Own (GERN)
Stuart Frankel & Co. And Its Partners Own (HPQ)
Stuart Frankel & Co. And Its Partners Own (HSPO)
Stuart Frankel & Co. And Its Partners Own (MSFT)
Stuart Frankel & Co. And Its Partners Own (NYX)
Stuart Frankel & Co. And Its Partners Own (PFE)
Stuart Frankel & Co. And Its Partners Own (PRST)
Stuart Frankel & Co. And Its Partners Own (SDS)
Stuart Frankel & Co. And Its Partners Own (UAL)
Stuart Frankel & Co. And Its Partners Own (XRX)
Stuart Frankel & Co. And Its Partners Are Short (QQQQ)
Stuart Frankel & Co. And Its Partners Are Short (AAPL)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Own (EBAY)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (TSO)
Accounts Managed By Kanundrum Capital Own (VLO)
Accounts Managed By Kanundrum Capital Are Long Oil
Accounts Managed By Kanundrum Capital Are Long U.S. Dollar
Accounts Managed By Kanundrum Capital Are Short Copper
Accounts Managed By Kanundrum Capital Are Short Yen

CNBC.com with wires. Reuters contributed to this report.

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EBAY
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TOL
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