Magazines Archives - 2009 June

eBay takes majority stake in South Korea’s Gmarket
Story 15 - E-Commerce

US-BASED eBay Inc is in the process of acquiring a majority stake in South Korea’s online market place Gmarket Inc. The Korean Fair Trade Commission has reportedly given the green light for the US$1.2-billion deal, which entails a cash purchase of 67% of the operation and merging it with Internet Auction Company (IAC), another local e-commerce marketplace that eBay had earlier acquired. However, the two will continue to maintain separate sites.

“The combination ... establishes an exceptionally strong leadership position for eBay in one of the world’s largest, most dynamic and innovative e-commerce markets,” said John Donahoe, eBay’s president and chief executive. “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.”

Young Bae Ku, Donahoe’s counterpart at Gmarket, said that eBay’s investment “will provide us with an excellent opportunity for our next growth stage in South Korea” and “help accelerate out expansion strategies beyond” the market.

Among other things, the consolidation of operations will enable GMarket and IAC sellers to list simultaneously on both platforms, enhancing buyer experience through improved selection, incentives and loyalty programmes, eBay stated. “The combination also provides the necessary support for Korean sellers who seek access to eBay’s global network,” it added.

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