News Brief: eBay Buying GSI Commerce for $2.4 Billion

Some acquisition strategies simply amount to acquiring enough size to be bought yourself. By their track record that may have been GSI Commerce’s strategy all along. Ebay has announced plans to snatch up the  fast growing performance marketing company and e-commerce platform provider for $2.4 billion.

GSI Commerce had been on a purchasing streak itself buying sports site Fanatics, Inc for $277 million, affiliate network Pepper Jam for an unreported amount, email marketing company e-Dialog for $157 million, retargeting solution provider FetchBack for an undisclosed amount,  and Retail Convergence which owned  the niche flash sale site Rue La La for $350 million to name few of their recent expansion moves.

Scot Wingo, CEO of ChannelAdvisor, told Internet Retailer that eBay’s purchase of GSI is a result of Amazon’s increasing success:

“This is largely driven by Amazon, with its wildly successful marketplace and Fulfillment by Amazon services. “The competition is intensifying in between eBay and Amazon, and eBay needs to merge that gap or face becoming obsolete.”

GSI currently has 180 clients including 31 of the Internet Retailer Top 50 retail companies like Toys ‘R’ Us. For now GSI Commerce will continue to operate as a separate business under current CEO Chris Saridakis. Ebay has already announced it will part with certain assets of GSI Commerce including Fanatics, Inc, Rue La La, and ShopRunner saying they do not match the companies long term strategic goals.

About Durjoy “Ace” Bhattacharjya

Durjoy “Ace” Bhattacharjya is an experienced entrepreneur and interactive advertising executive based in Boston. Before trading the agency world for the startup world, Ace worked for some of the world’s greatest brands including Ford, IBM, Mercedes Benz, Starwood, JetBlue and Pfizer. Ace is currently the Founder and CEO of medicalrecords.com, a Boston-based startup connecting physicians with electronic medical record software vendors. Previously, Ace was Vice President of Interactive Marketing for the renowned Athletes Performance, a Polaris Ventures portfolio company. He is also the former Director of Advanced Media for the United States Tennis Association / US Open. He is an advisor and early stage investor to a number of technology companies, both in the US and in India. His most recent investment is Kapitall.com, an online retail investing platform designed to transform the investing experience for the “Gaming Generation”. Ace has a BA from Boston University in International Relations / Economics and is an active Mentor in BU’s Kindle program.

One Response to News Brief: eBay Buying GSI Commerce for $2.4 Billion

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