eBay was founded on September 3, 1995, by Pierre Omidyar in San Jose, California, under the name AuctionWeb. The platform was initially a side project for Omidyar, who was working as a software developer. The first item sold on the platform was a broken laser pointer for $14.83, purchased by a collector of broken laser pointers.
AuctionWeb grew rapidly through word-of-mouth, attracting buyers and sellers of collectibles, electronics, and other goods. The company was renamed eBay in 1997. Meg Whitman joined as CEO in 1998 and led the company through its IPO in September 1998, which raised $63 million and valued the company at approximately $700 million.
eBay expanded aggressively through acquisitions in the early 2000s:
- **PayPal** (2002): Acquired for approximately $1.5 billion. PayPal became eBay's primary payment method and a major revenue contributor. eBay spun off PayPal as an independent company in 2015.
- **Skype** (2005): Acquired for approximately $2.6 billion. eBay sold Skype to a private equity group in 2009 and Microsoft acquired it in 2011.
- **StubHub** (2007): Acquired for approximately $310 million. eBay sold StubHub to Viagogo in 2021 for approximately $4.05 billion.
- **Gumtree, Kijiji, and other classifieds businesses**: eBay built a portfolio of classified ad sites globally, which it sold to Adevinta in 2021 for approximately $9.2 billion.
John Donahoe became CEO in 2008 and led eBay through a period of significant growth and strategic refocusing. Devin Wenig became CEO in 2015 following the PayPal spinoff. Jamie Iannone became CEO in 2020.
Under Iannone's leadership, eBay has focused on its core marketplace business, investing in technology improvements, seller tools, and category-specific initiatives (particularly in collectibles, luxury goods, and refurbished electronics). The company has also invested in authentication services for high-value categories including sneakers, trading cards, and watches.
For fiscal year 2024, eBay reported revenue of approximately $10.3 billion.