eBay Plans to Buy 33% Stake in Chinese Auction Website

World IT Report, Apr 10, 2003

eBay Inc, the US-based online auction company, has announced that it plans to pay US$30 million in cash for a 33% stake in EachNet, the Shanghai-based online trading website.

This move will be eBay's first acquisition in China. The two companies recently signed an agreement which stipulates that eBay has the right to expand its stake in EachNet.

Meg Whitman, eBay's Chief Executive and President, stated "The deal with EachNet is an important step forward in eBay's strategy to build a truly global marketplace," according to China Daily.

She added that e-commerce revenue in China is expected to grow "nearly twelvefold" to over US$16 billion over the next three to four years.

EachNet was founded in 1999, and has 3.5 million registered users.

eBay is very successful in the United States, and has been expanding abroad. In February, eBay paid US$9.5 million for NeoCom Technology, the Taiwan auction site operator. (World IT Report.com)