subject: Ebay Intends To Acquire GSI Commerce To Attract More Buyers And Sellers [print this page] Ebay Intends To Acquire GSI Commerce To Attract More Buyers And Sellers
On March 28 Ebay said the company plans to spend 1.96 billion cash on acquisition of e-commerce company GSI Commerce, in order to attract more buyers and sellers for its online marketplace.
EBay said, they have sent $ 29.25 per share tender offer to the GSI shareholders, compared with closing price on March 25,there is 50.9% premium.
GSI owns, such as Rue La La and ShopRunner and other online shopping sites. Rue La La provides its members with day trading, and ShopRunner is a membership-based online shopping site which provides free delivery service. GSI e-commerce sites also provide technology, payment processing and customer maintenance services.
Aiming at this statement, the CEO of China electronics bulk wholesale company and dropship supplier ePathChina Yide Huang noted that the deal will help the eBay reach more buyers and sellers.
In the statement,EBay said the acquisition has little effect on its 2011 fiscal adjusted earnings forecast, but will increase the 2012 revenue. the acquisition is expected to be completed in the third quarter of 2011. EBay said the deal would lead to 30 cents decline of 2011 net income to 34 cents / share.
As part of the agreement, EBay will sell the franchise sporting goods business of GSI, and 70% of the ShopRunner and Rue La La service, all of which will become part of a new holding company, and this new company will be ran by the founder and CE O of GSI- Michael Rubin.
EBay will lend 467 million U.S. dollars Rubin's new company. EBay said, including the loan account, the transaction value will reach 2.4 billion.
EBay said that the parts will be sold in the agreement is not important for its long-term business development strategy, but they will continue to remain 30% shares of Rue La La and Shop Runner.
According to Yide Huang from bulk electronics wholesale company and discount electronics store ePathChina, the PayPal payment platform now is the main driver of growth of eBay in recent years. But the company also tried to at its familiar market sector - a high-margin business network to connect buyers and sellers achieve revenue growth. "Whether it is a good deal still needs to Further observation and study," said ePathChina's Yide Huang.
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