Feeds

eBay buys Korean rival

Sold... to the primary-coloured magpie at the back

Build a business case: developing custom apps

eBay is paying $1.2bn for South Korea's leading online auction house Gmarket, which will be combined with eBay's existing Korean auction site - Internet Auction Company.

The two sites will continue to operate separately, but presumably back office operations will be merged and headcount reduced to cut costs.

eBay has already secured agreement from the holders of 67 per cent of total outstanding shares.

The Gmarket board of directors have all approved the deal.

For the second quarter ended 30 June 2008, Gmarket grew revenue 26 per cent to $67m and operating income was up 74 per cent to $12.6m.

The purchase still needs to be cleared by South Korean anti-trust regulators.

eBay bought a majority stake of Internet Auction Company - the number two player in Korea - in 2001 for $120m.

The buy makes a lot more sense than eBay's recent inexplicable, and expensive, buys.

The auction house said this week it wanted to offload Skype - the Voip provider it bafflingly bought for $2.4bn in 2005 - and it has also sold StumbleUpon back to its founders for an undisclosed amount.

eBay has already written off $1.4bn of the value of Skype and in January revenues for the fourth quarter fell for the first time in its history. The online tat bazaar watched revenue fall 6.4 per cent while profits were down 31 per cent.

Yahoo! owns ten per cent of Gmarket which it has agreed to sell it to eBay.®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?