EBay (EBAY)

Investing Activities

The net cash used in investing activities of $1.1 billion in 2009 was due primarily to cash paid for acquisition activities, investment activity and the purchases of property and equipment, partially offset by proceeds from the sale of Skype. The net cash used in investing activities in 2008 and 2007 was due primarily to cash paid for acquisitions and the purchase of property and equipment, which was offset in 2007 by cash generated by the sale of investments. In 2009 we sold our majority interest in Skype, resulting in cash proceeds, net of cash retained by Skype, of $1.8 billion. Cash expended for acquisitions, net of cash acquired, totaled approximately $1.2 billion in 2009, $1.4 billion in 2008 and $863.6 million in 2007. In 2009, we acquired Gmarket. In 2008, we acquired Fraud Sciences, Den Blå Avis and BilBasen and Bill Me Later. In 2007, acquisition activity primarily consisted of a $530.3 million earn out settlement payment related to our 2005 Skype acquisition as well as the acquisition of StubHub. Purchases of property and equipment, net totaled $567.1 million in 2009, $565.9 million in 2008, and $454.0 million in 2007, related primarily to purchases of computer equipment and software to support our site operations, customer support and international expansion.

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Investing Activities

The net cash used in investing activities in the first quarter of 2009 and 2008 was due primarily to cash paid for the purchase of property and equipment and the acquisition of Fraud Sciences during the first quarter of 2008. Purchases of property and equipment, net totaled $90.9 million and $134.6 million during the first quarter of 2009 and 2008, respectively, related primarily to purchases of computer equipment and software to support our site operations, customer support and international expansion. Cash received from loans receivable, net of collections during the first quarter of 2009 totaled $46.2 million and was related to Bill Me Later.