Rakuten acquires Ebates for $1bn in cash
Rakuten has acquired cash-back shopping website Ebates for $1bn in cash.
Rakuten, Japan's biggest e-commerce firm, will also hold 100 per cent of Ebates outstanding voting stock.
Rakuten founder and CEO Hiroshi Mikitani said that the combination of Rakuten and Ebates “will revolutionize e-commerce.”
“This is all about the consumer and we are excited to be able to empower our members with even more ways to enjoy shopping on Rakuten and Ebates. Combined, Rakuten and Ebates will be able to offer our members access to what will undoubtedly be the world’s largest selection of products across the broadest range of categories. It will also give our members the greatest incentives to keep shopping,” he added.
Last year, members spent over $2.2bn shopping through Ebates. which also provides access to thousands of coupons, discounts, promotions and special deals, including free shipping, at over 2,600 retailers.
However, a statement from Rakuten yesterday, which revealed the company was in talks with Ebates, led shares to fall to their lowest in over two months with investors concerned over its decision to make another acquisition just eight months after it paid $900m for messaging app Viber.