eBay splurges $2.4 billion to buy marketer for DKNY and many others
In the fast-moving world of Internet commerce e-Bay has just made a big buy, taking over a firm that works with many of the big names in retail worldwide
A company that provides e-commerce and marketing services to a variety of big retail names is being bought by online commerce giant eBay for $2.4 billion.
The client list of Pennsylvania-based GSI includes Aeropostale, DKNY, Adidas, Nautica, Toys R Us and Dick's Sporting Goods, among many others.
John Donahoe, eBay President and Chief Executive, said the deal would "significantly strengthen our ability to connect buyers and sellers worldwide. Combined with eBay Marketplace and PayPal, GSI will enhance our position as the leading strategic global commerce partner of choice for retailers and brands of all sizes."
The $29.25 per share price is 51% more than GSI's closing price on Friday. close. eBay will hive off GSI's licensed sports merchandise business and 70% of its ShopRunner and Rue La La businesses into a holding company to be run by GSI founder Michael Rubin.
The deal, reported by the Wall Street Journal, must be approved by GSI shareholders. The company has 40 days to see if it can get a better price.