eBay announced the closure of its Japanese operations effective March 31, and said it will acquire NeoCom Technology Co., Ltd., Taiwan's leading operator of auction-style Web sites.
NeoCom Technology was founded in October of 1998 and operates auction-style Web sites in Taiwan, uBid.com.tw and Bid.com.tw, which serve both consumers and businesses. eBay will acquire one hundred percent of NeoCom for $9.5 million in cash plus an amount based on working capital adjustments to be determined at the time the acquisition is closed.
eBay launched eBay Singapore last October and also has Sites in Korea, Australia and New Zealand as well as in North America and Europe.
Business Week had reported last year that Yahoo! held 95% of the $1.6 billion online-auction market in Japan compared to eBay Japan's 3% share. eBay CEO Meg Whitman is no stranger to the Japanese market. Meg spent 1989 to 1992 at the Walt Disney Company, highlighted by her work as the senior vice president of marketing for the Disney Consumer Products Division. During her tenure at Walt Disney, she opened the first Disney stores in Japan.
In explaining the challenges eBay faced in Japan, spokesperson Kevin Pursglove said, "We were late to the market and entered when Yahoo!/Softbank had gained a lot of momentum through its Internet portal." Pursglove went on to say that eBay is committed to the Asian market and may return to the Japanese market when economic conditions are better and when they have a strategy that addresses the issues they currently face in Japan.
