eBay plans S. Korean expansion with Internet Auction bid

09/02/04 - newratings.com

NEW YORK, September 2 (New Ratings) – eBay (EBAY) intends to continue with its expansion in Asia with an increased stake in Internet Auction Co.

The operator of the world’s largest online marketplace has reportedly raised its bid for an increased stake in Internet Auction Co (IAC), the largest online auction company in South Korea. According to media reports, eBay intends to acquire nearly 3 million of Internet Auction’s shares, which would boost its stake in the company from 62% to 86%. eBay has offered Korean Won 125,000 per share, up from the previous year’s offer of Won 70,000 per share. Internet Auction’s share price appreciated 12% yesterday on the news of the possible acquisition by eBay.

After having exited Japan in 2002, following a disappointing performance, eBay has been making its presence felt in several other countries in Asia, including Hong Kong, Singapore, Taiwan, Korea and India. The company purchased EachNet, China's largest e-commerce site, in 2003 and Baazee.com, India's most successful online shopping site, a couple of months back.

eBay has reportedly indicated that the $325 million involved in purchasing an additional 24% stake in South Korea’s Internet Auction would not hurt its financial results.