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Showing posts with label Dotcom. Show all posts
Showing posts with label Dotcom. Show all posts

March 28, 2011

eBay close to Acquiring GSI Commerce for $2.4 Billion

eBay announced on Monday that it will buy GSI Commerce, an ecommerce and interactive marketing services company, for $2.4 billion. The acquisition is expected to close in the third quarter of 2011.

GSI provides services like technology, order management, payment processing, fulfillment and customer care to about 180 clients across 14 merchandise categories.

Mashable reports that "The company will help eBay expand its services to “retailers and brands of all sizes — from sole proprietors to large merchants,” said eBay CEO John Donahoe in a statement. Meanwhile, eBay expects that GSI clients will benefit from eBay’s Marketplaces and PayPal services.
As part of the transaction, eBay will divest 100% of GSI’s licensed sports merchandise business, as well as 70% of ShopRunner and Rue LaLa. The former service provides free two-day shipping for its paid members and the latter is an invite-only shopping site.

These assets will be sold to a newly formed holding company, which will be led by GSI founder and CEO Michael Rubin. eBay will lend the new holding company $467 million and Rubin will invest another $31 millio