Seoul, South Korea - eBay has appointed Goldman Sachs Group and Morgan Stanley as financial advisors for the potential sale of its South Korean unit, eBay Korea, according to a report by Korea Economic Daily citing investment banking sources.
The advisors target major retail companies and private equity funds as potential buyers for eBay Korea.
eBay Korea's PR team denied previous reports of a divestiture, though market speculation suggested a deal may have fallen through due to pricing issues.
eBay Korea operates a customer-to-customer (C2C) eCommerce business model through its Gmarket and Auction platforms.
The company reported a total gross merchandise volume(GMV) of KRW 16 trillion ($15 billion) and revenue of KRW 1.06 trillion ($980 million) in 2019, with an operating profit ratio of 5.79%.
The company's growth must catch up to the South Korean eCommerce market.
While the sector saw a 20% compound annual growth rate between 2017 and 2019, eBay Korea's revenue CAGR was 5.61% during the same period.
Increased competition from Naver and Coupang has challenged eBay Korea's market position.
Naver's aggressive strategies, including seller benefits and lower fees, have attracted more third-party sellers to its platform.
Potential acquirers for eBay Korea include traditional retailers Lotte and Shinsegae, who are restructuring their businesses and increasing focus on online channels.
Private equity firms with retail industry experience, such as MBK Partners, Affinity Equity Partners, KKR & Co. Inc., and Anchor Equity Partners, are also considered potential buyers.
Financial advisors have reportedly set a minimum price of KRW 5 trillion ($4.6 billion) for eBay Korea, though market estimates range between KRW 2 trillion and KRW 3 trillion.
The final sale price and timing remain uncertain, with market observers suggesting a deal may proceed if buyer and seller price expectations align.
