How eBay Can Have $3 Billion in the Bank and Still Be Broke

By Owen Thomas, 5:45 PM on Mon Apr 13 2009, 7,191 views (Edit, to draft, Slurp)

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Look at eBay's books and it wouldn't seem to have money problems. But it's running a garage, unloading would-be Digg competitor StumbleUpon, and hopes to sell Internet phone service Skype. Why?

The company ought to be swimming in cash from taking a cut of every auction it runs, right? Nope, according to the New York Times:

eBay had $3.19 billion in cash at the end of last year, but $2.8 billion of that money is overseas and would be subject to repatriation taxes if the company were to invest it in its ailing United States e-commerce marketplace, according to analysts.