GSI Commerce Shares Soar on Buyout News
GSI Commerce (NASDAQ:GSIC) shares shot up at market open 50% rising $9.75 to $29.14 per share. With nearly 14 million shares traded so far this morning this marks a 10 fold increase in volume, up from the daily average of 1.4 million shares. This enormous increase comes on news of a buyout by online auction giant eBay Inc.( NASDAQ:EBAY).
Ebay announced it will pay a 51% premium of GSIC’s previous close. The deal is estimated to be $2.4 billion in cash. Part of the deal includes eBay lending GSIC founder Michael Rubin $467 million to create a new company incorporating the assets Rue La La and ShopRunner, two online shopping clubs. Ebay will maintain a 30% stake in the new company.
John Donahoe CEO for eBay Inc stated, “We intend to lead the next generation of commerce innovation. The acquisition of GSI, which offers the most comprehensive integrated suite of online commerce and interactive marketing services available, will significantly strengthen our ability to connect buyers and sellers worldwide.”
About GSI Commerce
GSI Commerce, Inc. provides e-commerce and interactive marketing services primarily in North America. The company operates in three segments: Global e-Commerce Services, Global Marketing Services, and Consumer Engagement.