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eBay Completes Tender Offer for Gmarket

eBay to Increase its eCommerce Role in Korea

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Today eBay announced the completion of a tender offer for all outstanding common shares and American Depositary Shares (ADSs) of Gmarket. Back in April, eBay announced that it was spending $1.2 billion to acquire those shares.

Gmarket is known as Korea’s leading eCommerce business, and it will apparently be combined with eBay’s existing online marketplace in Korea, Internet Auction Company.

"The combination of Gmarket and IAC establishes an exceptionally strong leadership position for eBay in one of the world’s largest, most dynamic and innovative e-commerce markets," says eBay CEO John Donahoe said upon the original announcement. "This deal creates strong operational synergies between the two market leaders, offers more opportunities for sellers and enhances our ability to serve complementary consumer segments."

Gmarket Screenshot

eBay shares details of the transaction:

Based on information provided by Citibank, N.A., the ADS Depositary for the tender offer, and Goodmorning Shinhan Securities Co., Ltd., the Common Share Depositary for the tender offer, a total of 50,496,693 common shares and ADSs, representing approximately 99.2% of the currently outstanding common shares and ADSs, were validly tendered and not withdrawn (including 557,006 common shares and ADSs tendered by guaranteed delivery procedures) in exchange for a purchase price of U.S. $24.00 per common share and per ADS, net to the seller in cash, without interest and less any required withholding taxes. All common shares and ADSs that were validly tendered and not withdrawn have been accepted for payment in accordance with the terms of the tender offer.

eBay also announced that it will provide a subsequent offering period of 25 business days for all common shares and ADSs that weren’t tendered in the initial offering period. that offering expires on July 20th, unless it gets an extension.

Research from IDC indicated a while back that Korea is the 6th largest eCommerce market in the world. According to those findings, only the US, Germany, the UK, China, and Japan are ahead.

eBay Completes Tender Offer for Gmarket
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  • http://www.ibdesignsusa.com Kathy

    I have to say that this news does not surprise me at all. Since they have driven everyone else away they would have to go to a new market. The way they have treated there sellers is terrible. Donahue keeps making one bad decision after another. Since he wants to destroy eBay he sure is doing a good job of it.

    I am so glad that I don’t sell on there anymore. Between our website and Bonanzle we are doing fine.

  • Guest

    It does not suprise me that ebay is doing that. Ebay is going down the toliet and needs to do something since all of there sellers are leaving there. Shame on you ebay for the way you have treated the sellers that made you big in the first place. Thats why I went to bonanzle and left the bay.

  • Guest

    If you want to see your sales die, Bonanzle is the place to list.
    Nothing but a haven for drop shippers and folks , who haven’t a clue about selling online.

    Check out their Forums: what are making for dinner tonight?, the names of your pets!, Storm warnings!, …it goes on and on.

    At least there’s business to had on ebay.

    • Canacreations

      You knew it was coming first they had discussions with Alibaba regarding merging some efforts and now this, a continuation of not looking at where the real problems are in their marketplace. Provide positive growth through acquisition.

      As to my deluded friend below without leaving his name. Have you looked at the Ebay boards lately. “I have no sales”, “Is it the Economy or is it just me.”. “Do you sell anywhere else?”. It is obvious that the bay is loosing sellers at an alarming rate (Experienced ones). As to Bonanzle being a haven for drop shippers what absurd poppycock especially coming from someone emersed in the largest drop ship market place on the planet. And this merger will just increase it as now we can add all the Korean drop shippers to those from Hong Kong and China.

      I am sorry you where however unable to navigate the simple menu’s in the discussion on Bonanzle so you could look at the Technology help, the sales board, the support discussion etc. It seems that you like to be part of a market place that tells you when, whom, how etc you can run your online sales. While other sites including Bonanzle offers you only the chance to build your business with your effort.

  • AromaticTreasures

    I left 2 user ID’d behind in eBay and I am glad I did. I had no sales at all there last month & was charged 75.00 for nothing. I have sold alot more than that in just one of my bonanzle booths and was only charge 23.00 Wow what a difference. I agree that eBay is going to go down the tubes with a rubber raft and no paddles! I am so Happy IBonanzle came along as I will never sell there ever again. Nor will I purchase from there. I have had alot of friends stop buying from there and are coming over into bonanzle due to the fact of the way they are treating the smaller sellers (business owners) like me.

  • Guest

    A year from now Bonanzle will be in the crapper, and no one will want to be associated with that site.
    If you want to make friends, thats the place to be.
    If you want sales, do yourself a favor and go some where else.
    The boyz– as they like to be called– don’t care about you.
    How many people have left after they got the “if you don’t like it leave” letter?

    • Guest

      bonanzle should buy out ebanza, and integrate their auctions. then they’d become unstoppable… an ecommerce chainsaw. that’s what they should do, speaking of buyouts.

  • penni

    Throw out the “noise” bring in the funk. Good job eBay! Just what this country needs, more imports! Geez, if you want to buy cheezy over priced imports, eBay’s the place!

    Shoppers looking for unique or quality items will have to go elsewhere. eBay doesn’t not have IT any longer.

  • Guest

    While eBay is busy kicking off nearly anything people list because it’s a weapon, looks like a weapon, recalled or someone has wined about it.

    They don’t even care that in those asian countries they sell dog and cat meat on the site and even endangered animal bits.

    That’s Donaho’s level

  • traceyparish

    I think it is always funny how people who have nothing nice to say always seem to hide behind “guest”. Really, if you have something to say feel free to say it and don’t hide your comments behind “guest”. No Bonanzle is not for everybody but for alot of us it has become a very good alternative to other sites whos fee’s have become outrageous.

    • Guest

      i agree- i feel Guest should be hunted down and killed

  • Guest

    First ebay tried to be like Amazon ……Next – Like Overstock ….
    They even tried to imitate Craigslist and then wanted to buy up more shares there……..

    Ebay doesn’t know who it is anymore……And the people in charge don’t remember what made it unique and special.

    Now they’re buying into an overseas site that is reminiscent of what Ebay used to be like.

    I think a 15 year old computer savvy kid would be able to make better decisions than the current Ebay management.

    One day…..They may realize what needs to be done – And all the msitakes that have been made.
    It will take a VERY long time…..And definately new management….Before they would be able to gain back sellers and gain trust again…..Both are gone presently.

  • Yeti

    I have heard of seller complaints on ebay for 2 years but tried to stay on ebay. But they just do not welcome smaller sellers like me. Fees, changes, bad buyers can insult and say what they wish and you cannot retaliate with a negative feedback, etc etc WOW it is one nightmare.

    With effect from today, I am taking my business elsewhere and I am currently writing to all me past clients about my migration away from ebay.

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