Zong acquired by EBay for $240 million

The e-commerce giant, EBay acquired Zong, the mobile payments provider, last week.

The acquisition is being seen as Zong’s attempt to up the ante in the mobile payments arena.

Talking of EBay, the e-commerce giant, believes that buying Zong will boost its another product, the Paypal, which has already a formidable position in the mobile payments and digital goods segment.

EBay reportedly paid $240 million in cash for Zong.

Zong notably has tie-ups with more than 250 mobile network operators globally (it looks after their payments, facilitates mobile payments for online goods and services in 21 languages, 45 countries).

EBay believes that the acquisition, which is awaiting regulatory approval, will not affect its financial guidance issued in relation to its first quarter earnings as on April 27, 2011, because of Zong that is expected to close in the third quarter 2011.

About Zong: Zong is based in the USA while it has branches in Geneva, Paris and Dusseldorf. Matrix Partners, Advent Venture Partners and Newbury Ventures are its partners. Zong enables consumers to carry out online transactions using their mobile phones and computer systems through direct carrier billing (that's all Zong needs is the transactor's phone number). --------

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