EBay Buys Zong for $240M

7/8/11

Menlo Park, CA-based Zong, builder of a system that allows mobile phone users to make online purchases without a credit card, said yesterday that it has been acquired by eBay, where it will become part of payment subsidiary PayPal. EBay said that it paid $240 million in cash for the startup, which had raised $30 million in venture backing from Advent Venture Partners, Matrix Partners, and Newbury Ventures. EBay said in a statement that it “expects that Zong will add complementary technology and talent that help strengthen PayPal’s leadership position in mobile payments and digital goods.”

Wade Roush is a contributing editor at Xconomy. Follow @

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