yudansha
TheGreatOne
Online auction giant eBay Inc. is buying Baazee.com Inc., India's most popular online shopping site, for $50 million to extend its reach in the world's second most populous country.
The deal is expected to be completed by September, the two companies said in a joint press statement Wednesday.
Internet usage is low in India, a country of more than 1 billion, with only 4 million Internet connections. But eBay is betting on the future. In the Hindi language, "Baazee" means the prize for a contest or race.
"Although it is early days for e-commerce in India, we believe there is great opportunity over the long term," said Meg Whitman, president and CEO of eBay, which is based in San Jose, Calif.
Baazee, based in India's financial hub, Bombay, claims it has 1 million registered users.
"This acquisition means the Indian online community gets access to the global marketplace," Baazee chairman Avnish Bajaj told The Associated Press.
He said all items listed on eBay would eventually be made available to Indians through Baazee. Similarly, eBay customers in 28 countries will be able to buy goods from India, Bajaj said.
Citing studies, Baazee said there are 17 million Internet users in India and the number is expected to rise to 30 million by 2006.
Many Indians who do not own computers visit cyber cafes to browse the Internet. Most online shoppers buy mobile phones, railroad tickets, clothes, toys, books and compact discs.
India's National Association of Software and Service Companies estimates that online shopping by individuals will reach $500 million in India by 2006 and grow each year by 79 per cent.
The deal excited India's Internet service providers.
"This shows the maturity of e-commerce business in India, though volumes are not yet great," said Amitabh Singhal, president of the Internet Service Providers' Association of India.
In afternoon trading on the Nasdaq Stock Market, eBay shares were up 48 cents at $87.69.
ebay.com
The deal is expected to be completed by September, the two companies said in a joint press statement Wednesday.
Internet usage is low in India, a country of more than 1 billion, with only 4 million Internet connections. But eBay is betting on the future. In the Hindi language, "Baazee" means the prize for a contest or race.
"Although it is early days for e-commerce in India, we believe there is great opportunity over the long term," said Meg Whitman, president and CEO of eBay, which is based in San Jose, Calif.
Baazee, based in India's financial hub, Bombay, claims it has 1 million registered users.
"This acquisition means the Indian online community gets access to the global marketplace," Baazee chairman Avnish Bajaj told The Associated Press.
He said all items listed on eBay would eventually be made available to Indians through Baazee. Similarly, eBay customers in 28 countries will be able to buy goods from India, Bajaj said.
Citing studies, Baazee said there are 17 million Internet users in India and the number is expected to rise to 30 million by 2006.
Many Indians who do not own computers visit cyber cafes to browse the Internet. Most online shoppers buy mobile phones, railroad tickets, clothes, toys, books and compact discs.
India's National Association of Software and Service Companies estimates that online shopping by individuals will reach $500 million in India by 2006 and grow each year by 79 per cent.
The deal excited India's Internet service providers.
"This shows the maturity of e-commerce business in India, though volumes are not yet great," said Amitabh Singhal, president of the Internet Service Providers' Association of India.
In afternoon trading on the Nasdaq Stock Market, eBay shares were up 48 cents at $87.69.
ebay.com
