eBay Acquires GSI Commerce

By Cindy Waxer March 28, 2011

In an effort to boost its ecommerce and interactive marketing capabilities, eBay has agreed to acquire GSI Commerce for $29.25 a share, or total consideration of approximately $2.4 billion. The acquisition, which will be financed with cash and debt, is expected to close in the third quarter of 2011.

According to a press release from eBay, the merger consideration represents a 51 percent premium over GSI’s March 25, 2011, closing price and a 47 percent premium over the average closing price of GSI Commerce common stock over the 30 trading days prior to March 28, 2011.

“We intend to lead the next generation of commerce innovation. The acquisition of GSI, which offers the most comprehensive integrated suite of online commerce and interactive marketing services available, will significantly strengthen our ability to connect buyers and sellers worldwide,” said John Donahoe, eBay president and CEO, in a statement. “Combined with eBay Marketplaces and PayPal, we believe GSI will enhance our position as the leading strategic global commerce partner of choice for retailers and brands of all sizes.”

Earlier this month, eBay made it free for users to list up to 50 items per month in auctions at any start price, and free to add the “Buy it Now” option to those listings, to appeal to auction enthusiasts as well as shoppers who want an immediate purchase. Effective April 19, 2011, the new pricing builds on a series of free-listing promotions in 2010 that drove significant increases in both new listers and listings.




Edited by Janice McDuffee

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Two Technologies That Showcase Good VR Could Cost $20K

By: Rob Enderle    6/23/2017

This month, there were two interesting product announcements. The first was in regard to very high-resolution displays that should arrive in VR headse…

Read More

Popularity of Voice Recognition Gadgets Highlights Need for Speech Analytics

By: Kayla Matthews    6/21/2017

Voice-activated personal assistant platforms such as Amazon's Alexa continue to grow in popularity, making lives easier in all sorts of ways. As such …

Read More

Can Machine Learning Defuse the Ticking Time Bomb of Open Recalls?

By: Special Guest    6/20/2017

Did you know that 150 million vehicles have been recalled in the USA since 2014? That's 38 percent of all the cars in America. And, according to Recal…

Read More

Technology and Ties: 5 Reasons Gen X is Taking Over in Business

By: Special Guest    6/20/2017

The generational clash in the workplace between Millennials and Baby Boomers gets all the hype. It reminds me of the debate over who would win - Muham…

Read More

For Amazon-Whole Foods' Future, Look to Zappos, Not Robots

By: Doug Mohney    6/19/2017

Amazon's bid for Whole Foods is obvious and brilliant. There's a lot of crazy talk about how Whole Foods will get turned into people-less stores like …

Read More