You are here: Home » Management » News » B-school
Business Standard

eBay buys Baazee for $50 million

Our Corporate Bureau  |  Mumbai 

Plans additional investment for technology upgradation and expansion.
California-based eBay, one of the biggest online auction sites in the world, today acquired Baazee.com Inc and its wholly owned subsidiary, Baazee.com India Pvt Ltd, in a $50 million all-cash deal.
With this, eBay will buy out the Rupert Murdoch-controlled News Corp (the largest shareholder), ICICI Ventures, Bid or Buy, Global Bridge Ventures, E-Vision Partners and some angel investors which are the current shareholders of the company.
The acquisition is expected to be completed in the third quarter of calendar year 2004. eBay will retain all Baazee's 100 employees, who will be offered stock options in eBay after the acquisition is effected.
Started in January 2000, Baazee.com is a subsidiary of the Delaware-based Baazee.com Inc. It is yet to break even. eBay intends to invest more in Baazee, in technology upgradation and expanding the customer base to class B and class C towns.
Baazee.com, floated by Avnish Bajaj (chairman and CEO) and Suvir Sujan (co-CEO), currently has more than 1 million "confirmed registered" users who trade in a wide range of categories, including electronics, cameras, phones, computers, movies, mobile phones, music, toys and travel.
Commenting on the acquisition, Gil Penchina, vice- president (international), eBay, said: "This agreement will allow eBay to expand its global footprint into the nascent but growing Indian market. Also, it will allow buyers and sellers in India and around the world to gain access to a broader range of choice."
With tariffs coming down exports will receive a further boost."
He added, "We have seen both the short term size of the business as well as the long term opportunity in the country." India currently has 17 million internet users and the number of users is expected to grow to more than 30 million by 2006.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, June 24 2004. 00:00 IST
RECOMMENDED FOR YOU
.