posted on March 28, 2011 07:33:42 AM new
.eBay To Buy GSIC For $2.4B, 51% Premium; GSIC Halted.Alcatel Jumps 9%: Goldman Says Buy On Product Mix, Profit
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By Tiernan Ray
Shares of eBay (EBAY) are down by 75 cents, or almost 3%, at $30.95, after the company said this morning it will purchase GSI Commerce (GSIC) for $29.25 per share, or $2.4 billion, in cash, a 51% premium to GSI’s close on Friday, and a 47% premium to the average close of the previous 30 days.
GSIC shares are halted at the moment and the Nasdaq says the stock should resume quotes at 10:30 am, Eastern, and trades at 10:35.
eBay CEO John Donahoe remarked, “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.”
The deal will reduce eBay’s GAAP EPS by 30 cents to 34 cents per share this year, assuming it closes in the third quarter, as expected, but will have no impact on non-GAAP EPS, the company said.
GSI’s software includes a grab-bag of different tools sold to merchants, including e-commerce site management software and order and inventory management software. The company also provides tools for analyzing online ad spending, such as “ClearSaleing,” an analytics tool for online ads.
The deal should add to earnings next year, eBay said, and should lead to cost savings of $60 million annually by 2013.
As part of the deal, eBay will lend $467 million to GSIC founder and CEO Michael Rubin in order for him to form a new company comprising the assets Rue La La and ShopRunner, two online shopping clubs, if you will, where members are rewarded with deals of various kinds. eBay will maintain a 30% stake in that new venture.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on March 28, 2011 06:43:04 PM new
Ebay will link to big shops such as Toyr us for unloading discounted goods to Ebay shoppers and Paypal will be the choice payment method.
Thats so nice, if you file a dispute with Paypal against TOYRUS or Nieman Marcus or Walmart for item significantly not as described,make sure you go to their competitor to get a signed letter of authentication,for Walmart,it will be its arch rival Target,for Neiman Marcus,it wil be Marshal Field and for ToysUS?Walmart?
And for Bestbuy,go straight to AMZN,do not pass go,do not collect 200 dollars !
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on March 29, 2011 10:21:33 AM new
With this acquisition,Ebay will be able to offer fullfillment service like AMZN.
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There is no 'Global savings glut',only wild horses and loose bankers.
