The online auction firm and its payments subsidiary PayPal already employ about 1,200 people in Dublin. Industry sources said the firm was looking at opening a base outside Dublin and was close to selecting Sligo, but has decided to expand in the capital instead.

Industry sources said the decision had been taken recently and was a significant disappointment to IDA Ireland, which is trying to encourage development outside Dublin.

A spokesman for eBay said it had not made any official expansion announcement and could not comment on any plans.

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Posted: 07|29|07 at 10:07 am. Filed under: Auction News.