eBay Acquires GSI Commerce
Today a news release was just issued announcing that eBay plans to acquire GSI. Since GSI Commerce owns PepperJam Network this will not only give eBay an ecommerce platform to compete with Amazon but also with other affiliate networks. This could have a huge impact on the affiliate world as it would position eBay to be one of the power players and compete with Google Affiliate Network, Commission Junction, Linkshare, and ShareASale. With eBay’s big pockets and vast resources this will defiantly a good match up for Google who recently purchased Performics a few years ago. This purchase helped Google get a large share of the CPA market. This will definitely be something to watch.
Today is a historic day for GSI Commerce. A news release was just issued announcing that eBay plans to acquire GSI.
As you know, eBay Inc. is an Internet pioneer and is today one of the world’s preeminent e-commerce and online payments companies. eBay has more than 94 million buyers and sellers worldwide and generated $62 billion in merchandise volume in 2010. PayPal is the leading online payments company with more than 94 million active registered accounts that generated $92 billion in payment volume last year. The acquisition of GSI will create a third, standalone business unit of eBay and mark their entry into providing e-commerce and interactive marketing services to enterprise clients.
We clearly see that the distinctions between online and offline commerce are disappearing. Technology is changing how people shop and how retailers and brands must compete. Today, retailers and brands need a partner that can enable multichannel distribution, create demand and drive shopping innovation.
We believe that combining GSI’s strength of serving leading retailers and brands with eBay Marketplace and PayPal businesses, as well as their mobile commerce leadership and focus on innovation, will create an unmatched suite of products and services for retailers and brands. With more than 50% of its revenue coming from outside of the U.S., we believe eBay is a perfect fit for GSI and its clients. eBay and GSI are well positioned to be your strategic global commerce partner of choice–enabling, not competing.
After the transaction closes, GSI’s e-commerce and marketing services businesses will be joining the eBay family and will be led by Chris Saridakis. Chris joined GSI as CEO of our global marketing services division about a year ago and has done an amazing job of developing and enhancing these businesses. Myself and our Board of Directors view Chris as the ideal person to lead GSI’s e-commerce and marketing services businesses based on his track record of success and his passion to drive growth for our clients. Chris is surrounded by an incredible leadership team and your GSI account teams will continue to remain fully focused on supporting you.
Also after the transaction closes, eBay will be selling 70% of Rue La La and ShopRunner and 100% of GSI’s Licensed Sports Merchandise business including Fanatics, to a new privately held company that I formed. This will allow eBay and GSI to better focus on e-commerce and marketing services businesses and maximize the benefit to clients from the combination of the companies. This along with eBay’s ability to invest in GSI’s products and services will allow GSI to focus on best meeting your needs. Between now and closing, I will work closely with Chris and upon closing of the transaction, Chris will report directly to eBay CEO John Donahoe.
GSI and eBay intend to lead the next generation of commerce – helping retailers compete globally and helping consumers shop for whatever they want, anytime and anywhere. While this represents a significant milestone for eBay and GSI, it becomes an even more important opportunity for you. I believe by strategically aligning eBay’s deep expertise in global, mobile and local commerce, you will be able to accelerate the growth of your business. Please feel free to contact me, Chris or Scott Hardy about these opportunities.
I am confident that GSI and all of its businesses are more focused than ever on supporting your needs.
Michael Rubin Chris Saridakis