eBay to Acquire Korean Commerce Site Gmarket

Authored by Jay Baage on April 17, 2009 - 10:35am.

San Jose, Calif. - Hoping to sharply boost its business in Korea, online auction giant eBay said that it will pay up to $1.2 billion to acquire Korean e-commerce site Gmarket. Under the deal, eBay will pay $24 a share through a cash tender offer, then combine Gmarket with its existing online marketplace in Korea, known as Internet Auction Co. (IAC). eBay will hold at least a 67% stake in the company under agreements already signed with members of the company's management and other investors. John Donahoe, eBay's president and CEO, said that the combination "creates strong operational synergies between the two market leaders... and enhances our ability to serve complementary consumer segments." Gmarket primarily focuses on fashion-oriented categories, while IAC focuses on computers, electronics and sports.

Related Links:
http://snipurl.com/g1h27
http://www.gmarket.co.kr
http://www.auction.co.kr