eBay was launched in September 1995 by Pierre Omidyar and Jeff Skoll. Initially a part-time endeavor, it quickly grew into a significant online marketplace. Omidyar, a computer science graduate, envisioned a fair platform where everyone could trade equally. Skoll, with an MBA from Stanford, brought business acumen to the venture. Starting from Omidyar's apartment with minimal equipment, eBay soon required its own server due to traffic. Charging a small fee per listing, the company grew, incorporating in 1996 and moving to Sunnyvale, California.
eBay, the renowned online marketplace, was established in September 1995 by Pierre Omidyar as a side project. Contrary to popular belief, the inspiration for eBay wasn't Omidyar's girlfriend's Pez dispenser collection but rather his vision of an equitable marketplace where everyone had equal access to information and could compete fairly. Omidyar, a Tufts University computer science graduate born in 1968, had previously worked at Claris and General Magic, and co-founded Ink Development Corporation, an early online retailing company. Jeff Skoll, who shared Omidyar's birth year, brought a Stanford MBA and experience from various solid business firms, including Knight-Ridder's online venture. Skoll's business acumen was instrumental in structuring fees and systems to transform Omidyar's concept into a viable business. Starting from Omidyar's apartment with minimal equipment, the duo's venture quickly outgrew their ISP's capacity, prompting them to purchase their own server and introduce a listing fee to cover costs. By May 1996, eBay was incorporated and moved to a Sunnyvale office, hiring a part-time employee to manage finances. The founders paid themselves a modest salary and soon realized they needed more capital and management expertise for further growth. They approached venture capitalist Bruce Dunlevie, and by spring 1997, eBay was listing 50,000 items daily with significant revenue. Benchmark Capital, impressed by eBay's organic growth, invested $5 million for a 22-percent stake, which they never had to use due to eBay's self-sustaining cash flow. Recognizing their limitations, Omidyar and Skoll sought a seasoned CEO and, with Benchmark's help, recruited Meg Whitman from Florists Transworld Delivery. Whitman joined eBay in March 1998 with a competitive salary and stock options. eBay's IPO on September 24, 1998, was a resounding success, with shares soaring on the first day of trading. Omidyar and Skoll became billionaires, and Benchmark Capital saw a staggering return on their investment. Whitman's leadership helped attract top talent to eBay's board, setting the stage for the company's continued success.
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