(MarketWatch) -- EBay Inc. said Thursday it will pay up to $1.2 billion to buy South Korea's largest online marketplace in a move to expand its Asian operations.
Under the terms of the deal, San Jose, Calif.-based eBay will make a cash tender offer of $24 per share for all outstanding shares of Gmarket common shares and American Depository Shares.
The purchase price will be up to $1.2 billion if all outstanding shares are tendered. EBay said it has already clinched agreements to purchase at least 67% of the Gmarket's shares.
Ebay will combine the South Korean e-commerce Web site with its own existing Korean marketplace business, Internet Auction Company.
"This deal creates strong operational synergies between the two market leaders, offering more opportunities for sellers and enhances our ability to serve complementary consumer segments," said eBay Chief Executive Officer John Donahoe.
On Wednesday, ahead of the news, shares of eBay closed at $14.31, down 0.5%, and Gmarket shares closed at $19.96, up 3.2%, on the Nasdaq.
The transaction, though still dependent on final Korean antitrust clearance, is expected to close in the second quarter of this year, the companies said in a joint press release.
The resulting combination "establishes an exceptionally strong leadership position for eBay in one of the world's largest, most dynamic and innovative e-commerce markets," said Donahoe.
Read more at MarketWatch
Wednesday, April 15, 2009
Apple closes first quarter without Jobs at helm
(MarketWatch) -- When Apple Inc. delivers its next earnings report later this month, it will mark a milestone of sorts: the company's first reporting period without Steve Jobs, its co-founder and chief executive.
Day-to-day management is in the hands of Chief Operating Officer Tim Cook, who has overseen several new product introductions but also has to cope with a severe economic downturn that has crimped demand for PCs and other high-tech products.
Apple is scheduled to deliver results for its second fiscal quarter on April 22. Although Jobs remains chief, he went on a medical leave of absence earlier this year that's scheduled to end in June. His health became a matter of concern last year when his appearance at a trade show set off rumors that the cancer he successfully battled in 2004 may have returned.
"They seem to still be focusing on strategy and execution," said Ashok Kumar, who covers Apple for Collins Stewart.
So far, investors seem to have kept their faith in Cook and company. Since Jan. 14, when Jobs announced he would be stepping aside to handle his health issues, Apple's stock has climbed more than 35% to $115 a share -- reaching its highest levels since last September.
Read more at MarketWatch
Day-to-day management is in the hands of Chief Operating Officer Tim Cook, who has overseen several new product introductions but also has to cope with a severe economic downturn that has crimped demand for PCs and other high-tech products.
Apple is scheduled to deliver results for its second fiscal quarter on April 22. Although Jobs remains chief, he went on a medical leave of absence earlier this year that's scheduled to end in June. His health became a matter of concern last year when his appearance at a trade show set off rumors that the cancer he successfully battled in 2004 may have returned.
"They seem to still be focusing on strategy and execution," said Ashok Kumar, who covers Apple for Collins Stewart.
So far, investors seem to have kept their faith in Cook and company. Since Jan. 14, when Jobs announced he would be stepping aside to handle his health issues, Apple's stock has climbed more than 35% to $115 a share -- reaching its highest levels since last September.
Read more at MarketWatch
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