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

PayPal Acquires Bill Management Company

By: Andrew Bindelglass    2/17/2017

Paypal has acquired TIO Networks, an online bill payment company, in a $233 million deal.

Read More

Yahoo! Mail App Helps Fight Hackers

By: Alicia Young    2/16/2017

Yahoo! sent out several emails yesterday to users it believes were hacked through the use of forged cookies. Here's how the Yahoo! Mail app can help p…

Read More

Social Media is More Than Making Bird Noises

By: Erik Linask    2/16/2017

It takes more time and resources than simply posting product offers on Twitter, Facebook, and Instagram, but the value of two-way social interactions …

Read More

SoftBank Drops $3.3 Billion on Fortress Buy

By: Steve Anderson    2/15/2017

SoftBank steps up its options with new business investment, picking up the Fortress Investment Group in a deal valued at $3.3 billion.

Read More

4 Ways to Be the Brady and Belichick of Business

By: Special Guest    2/14/2017

In an NFL era defined by parity, their success over 17 years is worth examining for business leaders. After all, Brady is not the most physically gift…

Read More