03|29|2011 11:19 am EDT
News From The Affiliate World
As reported by The Globe and Mail, EBay Inc. (EBAY-Q plans to buy e-commerce company GSI Commerce (GSIC-Q), for $1.96-billion USD in cash. The company sent a notice to their affiliates earlier today announcing the sale. GSI is the parent company of the PepperJam affiliate network. As part of the deal, EBay will sell off GSI’s licensed sports merchandise business and 70 per cent of ShopRunner and Rue La La, which will become part of a new holding company run by GSI’s founder and chief executive Michael Rubin. The new company will receive a $467 million loan from EBay, valuing the entire deal at $2.4 billion USD. While EBay doesn’t consider these business units important to them in the long them, they will keep a 30% stake in Rue La La and Shop Runner.