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.
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.
eBay has plans to purchase a controlling stake in South Korean online retailer Gmarket for $413 million, at a 32.5 percent premium.
The move by eBay would help the online auctioneer to become a significant player in South Korea's customer- to-customer online market by taking control of its key rival.
ebay will buy a 34.2 percent stake in Gmarket from its current top shareholder Interpark and Korean firm's chairman, at $24 a share, according to unidentified sources.
eBay is in talks to buy a minority stake in South Korean competitor Gmarket and is in discussions with Interpark to buy its 37 percent stake.The companies are waiting for approval from the Korea Fair Trade Commission, eBay spokesman Jose Mallabo said."There can be no assurance that the KFTC will approve the possible transaction, that an agreement will be reached or that a transaction will occur," Mallabo said in a statement.
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