Emart is acquiring the eBay business in Korea, to expand its online offering and create a 360-degree ecosystem, a report has shared.
eBay is planning to sell 80.01 percent of its Korean Business, which includes G-Market, IAC and G-9 to Emart, and will continue to operate a 19.99 percent stake.
The sale is reportedly going for USD $3.0 billion – the implied value of the entire Korean eBay business is USD $3.8 billion. The transaction will be finalised by the end of 2021 or early next year, with Goldman & Sachs handling the finances of the transaction. eBay’s off-platform in Korea contributed over USD $14 billion in GMV in FY21 and approximately $1.4 billion in revenue.
This transaction solidifies the creation of one of Korea’s leading e-commerce businesses, where the two companies will build a ‘360-degree ecosystem’. In the next few years, the two businesses will invest more than 1 trillion KRW for fulfilment centres – this includes the utilisation of its offline stores as Fcs and expanding its same-day delivery.
“After a thorough strategic review and competitive sale process, we are excited to come to an agreement with Emart,” said Jamie Iannone, the CEO of eBay. “This deal brings together two strong ecommerce and retail companies that can unlock tremendous potential in Korea and provide more choice for customers. We believe this move further optimizes our portfolio and creates value for eBay shareholders.”
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