No Contact from eBay Headquarters for Two Days... Possibility of Re-bidding?

In Final Negotiations with Shinsegae... Announcement of Preferred Bidder Seems Delayed

[Asia Economy Reporter Jo In-kyung] After the eBay headquarters' shareholders' meeting at 3 a.m. on the 16th and the conclusion of the annual board meeting, rumors circulated in the distribution industry that the new owner of eBay Korea would be decided. However, both Lotte and Shinsegae stated that they had not received any contact from either eBay headquarters or the sales advisory firm that morning.

The news that Shinsegae Emart, which teamed up with Naver, was the likely preferred bidder for eBay Korea first emerged around 11 a.m. on the 16th within the investment banking (IB) industry. Emart responded, "We have not yet been notified," but Lotte Shopping replied, "After reviewing the acquisition of eBay Korea, we judged that the synergy would not be as great as initially expected," effectively declaring withdrawal from the bidding. Because of this, the market took Emart-Naver's victory as a foregone conclusion.

At around 3:40 p.m. on the 16th, Emart announced through a disclosure that "We participated in the final bid to acquire shares of eBay Korea and are in discussions with the seller, eBay headquarters, but nothing has been finalized yet." It was also confirmed that as of 11 a.m. on the 17th, eBay had not notified Emart of the selection as the preferred bidder.

In the distribution industry, the prevailing opinion is that the announcement of the preferred bidder selection is delayed because eBay headquarters is engaged in last-minute negotiations with Shinsegae. Some speculate that since both bidders, Shinsegae and Lotte, submitted bids far below the price eBay headquarters expected, eBay may suspend the sale altogether.

This market confusion is regarded as evidence that the eBay Korea acquisition battle has effectively failed to generate excitement. It is already known that in this final bid, Shinsegae offered a price in the low 4 trillion won range, while Lotte bid below 3 trillion won.

Earlier this year, after eBay headquarters officially announced the sale of eBay Korea, the appropriate sale price rose from 3 trillion won to 4 trillion won and even up to 5 trillion won. However, Kakao, considered a strong candidate during the preliminary bidding, withdrew at the last minute. SK Telecom and MBK Partners also ultimately did not participate in the final bid.

A distribution industry insider said, "Considering the rapidly changing e-commerce market in recent years, it is true that evaluations of eBay Korea's acquisition value vary," adding, "Shinsegae will likely engage in strategic negotiations to acquire under the most favorable conditions, taking such factors into account."