Ebay to buy stake in SKorean online marketplace
Park Joo-man, chief executive of Internet Auction Co., from left, Lee Jay, corporate senior vice president of eBay Inc. and general manager of eBay Asia Pacific and Ku Young-bae, chief executive and representative director of Gmarket join their hands during their press conference in Seoul, South Korea, Thursday, April 16, 2009. EBay Inc. said it plans to pay as much as $1.2 billion to purchase a majority stake in Gmarket Inc. , South Korea's top online marketplace.(AP Photo/Ahn Young-joon)
SEOUL, South Korea - EBay Inc. said Wednesday it plans to pay as much as $1.2 billion to purchase a majority stake in South Korea's top online marketplace.
San Jose, Calif.-based eBay and Gmarket said that eBay will make a cash tender offer of $24 a share to purchase all outstanding common shares and American Depository shares in Gmarket Inc. If successful, eBay said it would take a stake of at least 67 percent in Gmarket.
The release said the agreement calls for eBay to combine Gmarket with eBay's existing online marketplace in South Korea, Internet Auction Company.
"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," John Donahoe, eBay's president and chief executive officer, said in the release.
EBay said in September it received preliminary conditional approval from South Korean regulators for its potential purchase of a stake in Gmarket.
The venture is the latest for eBay into the online auction market outside the United States.
A service of the Associated Press(AP)