eBay plans to spend as much as USD1.2bn to acquire a majority stake in South Korean marketplace rival, Gmarket. The news shows eBay is even keener to buy into the firm than was previously thought. Earlier this week, the firm was reportedly eyeing a USD413m deal to gain 34.2% in Gmarket. It received approval for the takeover from South Korea's competition commission last year.
eBay now says it will offer USD24 per share and expects to gain a stake of at least 67% in Gmarket. Some USD350m worth of shares will be bought from Gmarket owner, Interpark. The deal will give eBay a commanding presence in South Korea, the world’s sixth largest market for e-commerce. Between them, eBay and Gmarket currently control nearly 90% of the market for online auction sites in South Korea.
The takeover bid comes as eBay divests itself of other assets. This week eBay announced it will spin-off internet call firm Skype near year. The firm has also just offloaded internet recommendation engine StumbleUpon.
StrategyEye's related categories: Online Marketplaces
StrategyEye's related companies: Interpark Corp, Gmarket, eBay
