Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

UNRWA official breaks down over Gaza deaths

Read more

DEBATE

Argentina Defaults: Kirchner Cries Foul Over 'Vulture Funds' (part 2)

Read more

DEBATE

Argentina Defaults: Kirchner Cries Foul Over 'Vulture Funds'

Read more

THE BUSINESS INTERVIEW

War and Markets, with Steen Jakobsen, Chief Economist at Saxo Bank

Read more

FOCUS

Constitution prohibits Aung San Suu Kyi from running for president

Read more

IN THE PAPERS

Is Poor Military Training Causing a Larger Death Toll in Gaza?

Read more

IN THE PAPERS

Villepin Criticises France for Not Speaking Out on Gaza

Read more

BUSINESS DAILY

France's Iliad reaches for T-Mobile

Read more

AFRICA NEWS

Air Algerie investigation continues

Read more

  • Truce violation accusations fly as Gaza ceasefire begins

    Read more

  • Regional summit to tackle deadly Ebola outbreak

    Read more

  • €2.5mn of cocaine ‘disappears’ from Paris police HQ

    Read more

  • Interactive: France’s new plan to counter jihadism in Africa

    Read more

  • Ukrainian army suffers losses in separatist attack

    Read more

  • Dozens killed and injured in Taiwan gas blast

    Read more

  • Argentinian markets plummet following default

    Read more

  • French Jews speak of growing fear in Paris amid Gaza conflict

    Read more

  • Video: Inside Hamas ‘terror’ tunnels in Gaza

    Read more

  • Sierra Leone declares state of emergency over spread of Ebola

    Read more

  • France remembers murdered socialist hero Jean Jaurès

    Read more

  • Air France ground workers to strike on August 2

    Read more

  • Scores feared dead in India landslide

    Read more

  • Russia ordered to pay further €1.9 billion to Yukos shareholders

    Read more

  • Russia defiant as US, EU unveil 'phase three' sanctions

    Read more

Business

eBay buys into South Korean market

Latest update : 2009-04-16

California-based eBay will spend up to 1.2 billion dollars to buy a controlling stake in South Korea's largest online marketplace, Gmarket, as part of plans by the US online auction giant to expand overseas.

AFP - US online auction giant eBay will take a controlling stake in South Korea's biggest online marketplace Gmarket in a deal worth up to 1.2 billion dollars, the two companies announced on Thursday.
   
Gmarket's directors voted unanimously to approve the transaction expected to be completed by the end of June, with eBay offering 24 dollars a share.
   
The total purchase price would be about 1.2 billion dollars if all outstanding shares are tendered.
   
Under an agreement with Gmarket's management and investors, eBay will hold at least 67 percent of the South Korean firm, a statement said.
   
Shareholders that have signed agreements to tender include Interpark Corporation and its chairman Lee Ki-Hyung, current holders of about 34 percent of Gmarket.
   
eBay will combine Gmarket’s operations with its own Korean subsidiary, Internet Auction Company, while maintaining separate sites.
   
By acquiring Gmarket the California-based company will become the largest player in South Korea's online auction market with a 37 percent share.
   
"The combination of Gmarket and Internet Auction Company establishes an exceptionally strong leadership position for eBay in one of the world’s largest, most dynamic and innovative e-commerce markets," John Donahoe, eBay’s president and chief executive officer, said in a statement.
   
"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."
   
Ku Young-Bae, Gmarket’s president and chief executive officer, said the transaction will help his firm expand beyond South Korea.
   
"eBay also expects the combination with Gmarket to provide a potential platform for further expansion within Asia," the companies said in their statement.
   
South Korea's Fair Trade Commission last September gave conditional approval for the deal when it authorised eBay's purchase of the 34 percent stake from Interpark and its chairman Lee.
   
"Despite concerns over the impact on the country's open market, the FTC approved the deal as most Internet-based markets are easily accessible and new competitors may emerge at any time in online markets," a spokesman for the commission said at the time.
   
eBay Tuesday announced plans to spin off Web communications service Skype, saying it wants to focus entirely on its two core growth engines -- e-commerce and online payments.
   
South Korea is the world’s sixth-largest e-commerce market behind the United States, Germany, the United Kingdom, China and Japan. Nearly all households are connected to the Internet.
   
In February the Korea Communications Commission announced plans to install a nationwide super-broadband infrastructure by 2013, which would enable the downloading of a feature film in one or two seconds.

Date created : 2009-04-16

COMMENT(S)