John Paczkowski

Recent Posts by John Paczkowski

AmEx: Say We Want a Revolution

157896576_APYKi-Th-2AOL moguls Steve Case and Ted Leonsis are smiling into their cornflakes this morning. Moments ago, American Express (AXP) announced plans to acquire Revolution Money, the online payments outfit they’ve been working on since 2007, for about $300 million. A nice exit for Revolution, which was valued at less than $200 million during its last funding round earlier this year.

A savvy move for Amex, too. Though Revolution competes against entrenched credit-card companies and PayPal, among others, its alternative payment system, which reduces costs for accepting credit cards by up to 75 percent, is quite attractive to merchants who’ve shouldered those costs for so long.

Says JP Morgan analyst Imran Khan: “While it is hard to know precisely what direction AmEx plans to take the Revolution assets, we think the acquisition suggests the company is trying to be more aggressive in the online payments arena. We think PayPal’s existing account base and international footprint have given it a network advantage in the C2C space that is hard to dislodge. On the other hand, we believe significant room exists for market share gains in Online Payments by companies that offer innovative solutions, and this acquisition gives Revolution Money a stronger backer.”


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December 30, 2013 at 6:49 am PT

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December 29, 2013 at 2:12 pm PT

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December 29, 2013 at 5:58 am PT

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December 28, 2013 at 12:05 pm PT

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Another gadget you don’t really need. Will not work once you get it home. New model out in 4 weeks. Battery life is too short to be of any use.

— From the fact sheet for a fake product entitled Useless Plasticbox 1.2 (an actual empty plastic box) placed in L.A.-area Best Buy stores by an artist called Plastic Jesus