eBay and Gmarket jointly announced a definitive agreement for eBay to combine South Korea's Gmarket with eBay's existing Korean online marketplace. Under the terms of the agreement, eBay will make a cash tender offer of $24.00 per share for all outstanding Gmarket common shares and American Depositary Shares, for a total purchase price of up to approximately $1.2 billion assuming all outstanding shares are tendered.

Yahoo has agreed to sell its approximate 10% share in Gmarket, to eBay. Yahoo will continue to maintain its other operations in South Korea following the sale, it announced.

eBay said it would will combine Gmarket's operations with IAC, while maintaining separate sites. According to the announcement, the combination provides the necessary support for Korean sellers who seek access to eBay's global network. "By joining eBay's Cross Border Trade program, Korean small and medium sized businesses can export their products to buyers in foreign countries." It went on to say, "Gmarket's focus on fashion-oriented categories and IAC's focus on computers, electronics and sports give the two platforms core strengths in complementary consumer segments."

At closing, eBay will hold at least 67 percent of Gmarket as a result of shares tendered pursuant to agreements to tender with members of management and other investors sufficient to satisfy the minimum tender condition, as well as new shares issued by Gmarket in connection with the combination of Gmarket and eBay's existing Korean marketplace business, Internet Auction Company. Shareholders that have signed agreements to tender include Interpark Corporation and its chairman, Ki Hyung Lee, current holders of approximately 34 percent of the outstanding shares of Gmarket.

eBay Inc. will host an investor conference call on Thursday, April 16 at 6 a.m. PDT to discuss this announcement. A live webcast of the conference can be accessed through eBay Investor Relations website.