eBay 2001 Annual Report Download - page 98

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
In February 2002, we announced our plan to close our eBay Japan operations. Under our plan,
employees were notiÑed of their employment termination and the eBay Japan website will be closed by
March 31, 2002. The estimated costs for severance, contract terminations and other closure costs are
approximately $1.0 million to $2.0 million and will be recorded in the statement of income for the three
months ended March 31, 2002.
In March 2002, we signed a share purchase agreement to purchase a 38% interest in the outstanding
common stock of EachNet, Inc., which is a 33% interest on a fully diluted basis, in exchange for
$30.0 million in cash. EachNet provides an online marketplace for the trading of goods and services for
both individual and business customers in the Peoples Republic of China. We will account for the
investment using the equity method of accounting.
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