EBay to sell its enterprise unit four years after buying it

A group of privacy equity firms will pay cash to buy the former GSI Commerce

EBay has reached a deal to sell its enterprise unit, a division focused on building and running online shopping sites for bricks-and-mortar retailers as well as provides marketing services, for less than half than it paid four years ago.

The US$925 million deal, announced Thursday, will give control of eBay Enterprise to a group of private equity firms led by Sterling Partners and Permira Funds, eBay said in a press release.

EBay acquired its enterprise unit, then called GSI Commerce, in June 2011, for $2.4 billion. The unit has more than 500 customers, including Dick's Sporting Goods, American Eagle Outfitters, Abercrombie & Fitch, PetSmart, Ikea and Major League Baseball. Many of those businesses compete for online sales with eBay itself.

The sale of eBay Enterprise was prompted by "increasingly divergent business opportunities" between the enterprise unit and the rest of eBay, a spokeswoman said by email.

GSI was founded in 1995 as a sporting goods seller and branched out into e-commerce in the 2000s.

The sale is an all-cash deal, the spokeswoman said. EBay expects the sale to close in the second half of this year, and eBay Enterprise to be renamed by early 2016.

Also on Thursday, eBay reported $4.4 billion in revenue for the second quarter of 2015, up from $4.1 billion a year earlier. Excluding one-time costs, net income was up 5 percent to $931 million.

The quarterly earnings report comes just four days before eBay will split off its PayPal Holdings business to a separate entity. PayPal's revenue for the quarter was $2.3 billion, up 16 percent from a year earlier.

Earnings per share was $0.76, beating analyst estimates by $0.03. The company's share price was up 4.7 percent in Thursday morning trading.

Read more: CMO50 #11: Steven Brennen, EBay Australia

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's email address is grant_gross@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Putting the ‘human element’ back in marketing

During the recent CMO Momentum conference, Paul Mitchell shared how marketing leaders can create cultures that deliver

Paul Mitchell

Managing director, The Human Enterprise

The rise and rise of voice search

In 1982, an AT&T employee by the name of Plotzke predicted the rise of voice: “In fact, it has been predicted that, by 1990, well over half the communications dollars spent by businesses will be for products and services that include voice technologies.

Michael Jenkins

Founder and director, Shout agency

Is design thinking the answer for the next generation of marketing?

The speed and pace of change will never be slower than we’re experiencing today. So in this era of unprecedented change, how can brands meet soaring consumer expectations, stay relevant and deliver differentiated and connected experiences?

Merryn Olifent

Senior consultant, G2 Innovation

I have been suffering from (HERPES) disease for the last two years and had constant pain, especially in my knees. During the first year, ...

Steven Kizzy

KPMG Australia appoints ex-Publicis leader as head of brand strategy

Read more

When they say they had to much focus on traditional media, this is code for very bad creative, and very bad category strategy, Clearly th...

Rob

iSelect outlines new approach to arrest ineffective marketing as its reports full-year results

Read more

play barbie games https://www.barbi-igre.net/

Karlo Bozak

Rethinking gamification in marketing

Read more

There are lots of software tools available online that can do what you are asking about and also trace the location of a cell phone and e...

Curtis Bacchus

CMO's top 10 martech stories for the week - 9 August 2018

Read more

Love the counter intuitive StubHub example!

Rishi Rawat

Yale University says you’re missing this marketing advantage

Read more

Latest Podcast

More podcasts

Sign in