PayPal Acquires Xoom, Targets Mobile Money Transfers
PayPal’s acquisition of Xoom (XOOM) for $890 million late Wednesday puts it into competition with Western Union (WU) in international money transfers and builds on its earlier purchase of Venmo, a person-to-person mobile app for millennials. PayPal, which will be spun off on July 17 by eBay (EBAY), agreed to acquire Xoom for $25 per share in cash. The deal is expected to close in Q4 and will be “slightly dilutive” to PayPal’s non-GAAP earnings per