Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : eBay - Superb Internet Business Model -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (3998)	7/5/1999 1:41:00 AM
From: Doug Fowler	Read Replies (3) \| Respond to of 7772

William: The reason that the outage represents about $4M in revenue is because eBay refunded for all auctions that were active at the time of the outage. That means about one week's worth of auctions (not just a few days), as the average auction is for one week. (Even if an auction was listed just a few hours before the outage started, that person's auction listing fee and commission was forfeited by eBay.) As you may recall, eBay estimated the cost of the outage to be between $3M and $5M. I am simply using the mid-point of their estimate, combined with the knowledge that about 2.3M auctions were active at the time of the outage and with the fact that eBay derives around $1.50 to $1.70 on average per auction. --Doug