eBay Acquires Zong for $240 Million
eBay announced that its acquisition of Zong, a mobile payments provider, has been finalized. The company paid $240 million for it. Zong allows people to use their mobile phones to purchase virtual goods from online games and social networks.
To use Zong, the user will be asked to enter their phone number that will be verified by the mobile payment provider before it clears the payment. The charges would be reflected on the user’s monthly mobile phone bills. It would make mobile transactions more convenient.
Zong is affiliated with more than 250 mobile network operators in 45 countries. eBay said that its acquisition of Zong will help extend the reach of its PayPal online payments service, such as in the digital goods markets and mobile payments.
There are lots of people who spend real money for virtual goods in Facebook games, such as Farmville and Cityville. There are also youth-oriented networks, such as IMVU and Stardoll that let the users buy outfits for their online avatars.
eBay shares increased by 19 cents to $30.39 during the afternoon trading. Its shares increased by $1.05 or 3.6 percent, to $30.20 during the regular trading session. It means that the investors approve its acquisition of Zong.