Sold! eBay to expand in Chicago, eligible for $12 million in state incentives
BY BRIAN SLODYSKO Staff Reporter June 15, 2014 1:56PM
(FILES)The eBay homepage appears on a screen in Washington, DC in this September 3, 2010 file photo. Corporate raider Carl Icahn took aim at eBay on February 24, 2014, calling it to hive off payments unit PayPal while blasting its directors for conflicts of interest and its CEO as "asleep". In a harsh attack on the online marketplace and auction site, Icahn said eBay needs to unleash PayPal to allow it to grow more aggressively to compete better in the online payments sector. "We believe creating two dedicated and highly focused independent businesses would provide employees and stockholders the best opportunity to remain competitive over the long term," Icahn wrote in an open letter to the company. AFP PHOTO/Nicholas KAMMNICHOLAS KAMM/AFP/Getty Images
Updated: July 17, 2014 11:22AM
Commerce-giant eBay Inc., the multibillion-dollar online auction site, will be expanding into Chicago in the near future, state officials said.
The move comes after eBay snatched up Chicago tech startup Braintree for $800 million in 2013. Now the San Jose-based company will build on that footprint, hiring an additional 360 employees over the next three years and leasing out a 60,000-square-foot office in the Merchandise Mart, said David Roeder, a spokesman for the state Department of Commerce and Economic Opportunity.
In exchange for making the hires and moving into the new space, eBay will be eligible for an incentives package that should cut $12 million from their tax bill over the 10 years, Roeder said.
But in order to collect the incentives, eBay must make good on a pledge to spend $24 million on their Chicago expansion efforts. And the deal stipulates the company must hire 216 full-time employees by Spring 2016, with another 144 full-time employees hired by march of 2017, according to a statement issued Sunday by Gov. Pat Quinn’s office.
“I am thrilled that eBay Inc. is choosing to expand their world-class business in the heart of the Midwest,” Quinn said in a statement. “Illinois is home to an impressive technology community that will serve eBay’s foundation while creating jobs for our hardworking residents. By coming to Illinois, eBay will benefit from our state’s leadership in emerging technologies and access to a workforce with skills that are second to none.”
The company has already signed a lease for the Merchandise Mart space, which they will build out to their needs. Existing employees in Chicago will move into the new office space sometime this year, according to the statement.