Updating our Stock of the Day profile of eBay, in yet another sign that the company is woefully mismanaged, the worldwide auction service firm has announced plans to shut down its Chinese subsifiary, EachNet, and partner instead with China-based TOM Online to keep a presence in the world's most populous nation.
After an original 2003 investment of $30 million, eBay bought EachNet for a purported $120 million in 2004. Management squandered money and resources over the past 2+ years before finally deciding to pull the plug. Whether the unit had or would ever achieve profitability is doubtful.
For more detail on eBay's Chinese experience, see this article on internetnews.com.