EcommerceBytes-NewsFlash, Number 2282 - May 07, 2010     2 of 2

Eight Years Later, eBay Returns to Japan through Joint Venture

Email This Story to a Friend

eBay will return to Japan through a joint venture eight years after Yahoo's dominance forced it out of the country. eBay has entered into an agreement with the founder of Gmarket, the Korean marketplace it acquired in 2009, to expand Gmarket's existing online marketplaces in Japan and Singapore.

According to eBay's announcement, ecommerce is expected to grow by 30% in Japan and by 13% in Singapore between 2009 and 2012, and eBay said the agreement would provide a foundation for longer term expansion of Gmarket into other Asian markets.

eBay will have a 49% stake in the joint venture, and an entity owned by Mr. Ku will have a 51% stake. eBay will contribute assets from Gmarket's existing Japanese and Singaporean businesses to the joint venture, and eBay and Mr. Ku will make financial contributions of approximately $10 million each to the joint venture. eBay will also license Gmarket's technology and brand on behalf of the joint venture, while Young Bae Ku - founder of Gmarket and CEO of the new joint venture - will provide local management expertise.


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


You may quote up to 50 words of any article on the condition that you attribute the article to EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com.
All other use is prohibited.