Ebay to Sell KOP Unit For $925 Million
Online retailer eBay has sold its King of Prussia unit (formerly called GSI Commerce) for $925 million — a deep discount considering the purchase price of $2.4 billion. That’s a loss of almost $1.5 billion.
Now called eBay Enterprise, it’s being bought by a group led by private-equity firm Permira. The company helps businesses sell goods online and bolster their e-commerce presence.
The eBay Enterprise unit has seen sluggish growth as many companies — like Toys R’ Us have moved their e-commerce businesses in-house.
The news came as part of an earnings call where eBay announced that revenues have grown by 7 percent in the last quarter. It’s the final earnings call in which eBay and PayPal are together as one company. The two business are set to split soon.