eBay entered into an agreement with Emart, which will acquire 80% of eBay’s businesses in Korea for $3 billion in gross cash proceeds. The deal puts the implied value of the whole Korean Business at approximately $3.8 billion.
While eBay doesn’t see value in holding on to its Korean marketplaces business, it values it enough to retain 20% of it. The implication – a belief that the new buyer can do a better job of running the business.
It doesn’t appear eBay needs the money – it sold its ticket marketplace StubHub to Viagogo for $4.05 billion in cash last year and is in the process of selling its Classifieds unit to Adevinta for billions (and again, it’s retaining a stake in the new company).
eBay CEO Jamie Iannone said in today’s announcement, “After a thorough strategic review and competitive sale process, we are excited to come to an agreement with Emart. 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.”
eBay said that together, eBay Korea and Emart can build a 360-degree ecosystem that will allow “full touch points with customers in categories ranging from grocery to general merchandise.”
The transaction is expected to close by the end of the year or early next year, subject to regulatory approvals.