eBay Prepared To Sell Its Enterprise Unit
eBay might sell its enterprise business to Permira for $900 million.
eBay Inc. is currently working its way to retain the position and be the best online marketplace. The company failed to keep up with the pace of the market leader, Amazon, and other online marketplaces as well, including Walmart, Best Buy, Target, etc. It was the pioneer of launching the first ever-online auction website that was not only a business-to-consumer or a business-to-business platform. eBay also allows consumer-to-consumer sales through its online auction web page.
According to Reuters, the e-commerce giant is all prepared to close down a deal, which involves the selling of its enterprise business in the coming times. Sources suggest that the deal is closed down at nearly $900 million and the enterprise unit will be handed over to Permira, which is a consortium led by private equity firm.
The Wall Street Journal wrote that the deal could be announced by Thursday, which is likely to be coinciding with the second quarterly results of eBay scheduled to be announced on the same day. Sources familiar with the matter broke this news to The Wall Street Journal. However, it says that according to its sources, there are no guarantees that the selling deal could be finalized by Thursday.
In the beginning of July, people acknowledging the matter told Reuters that there was a deal between eBay and a private equity firm, Thomas H. Lee Partners LP, regarding the selling of its business enterprise unit to them for more than $1 billion.
However, the company stated in January that it would only entertain a public offering or sale of its enterprise unit. It further added that its enterprise business did not fit along with its other online marketplaces or PayPal.
According to Business Insider, “eBay's enterprise business, formerly known as GSI Commerce, helps retailers around the world beef up their online presence and e-commerce capabilities. It generated $288 million in revenue in the first quarter. GSI Commerce was acquired by eBay for $2.4 billion in 2011. It has lost customers and seen sluggish growth in the past few years with clients moving their online operations in-house.”
The representative of the company declined to comment on the matter and said that the company does not want to comment as well regarding this speculation. Furthermore, the sources failed to reach Permira for a comment regarding this speculation. The next upcoming days would be exciting, as it will be revealed whether a deal is closed down or not.