eBay Drops $1.2 Billion on Korean eCommerce Site
This has certainly been a huge week for eBay announcements. First, it was announced that StumbleUpon as being taken back by its founders. Then a similar scenario was announced for Skype. Then eBay announced a ton of changes to its marketplace.
Now eBay has made another huge announcement in that it is spending $1.2 billion to acquire all outstanding shares of Korea’s leading eCommerce business, Gmarket, which will be combined with eBay’s existing online marketplace in Korea, Internet Auction Company (IAC).
"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. "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."
"We welcome eBay’s investment in Gmarket," says Gmarket president and CEO Young Bae Ku. "This transaction will provide us an excellent opportunity for our next growth stage in Korea and will also help accelerate our expansion strategies beyond Korea. We look forward to teaming up with eBay’s leadership both locally and globally to drive our future growth and expansion."