EBay To Pursue E-Commerce Opportunity In India Through Agreement With Flipkart

(RTTNews) - eBay Inc. (EBAY) Monday said that it signed with India's e-Commerce company Flipkart to jointly pursue opportunities in the Indian market.

eBay will make a $500 million cash equity investment in Flipkart and sell its eBay.in business to Flipkart. eBay.in will be owned and operated by Flipkart, upon the close of the transaction later this year. Upon the closure of the deal Flipkart will acquire eBay's buyers in India. eBay will remove the number of active buyers in India from its reporting during the quarter in which the transaction closes.

The companies will jointly pursue cross-border trade opportunities to make eBay's global inventory accessible to more India consumers and eBay's active buyers globally will have access to Indian inventory provided by Flipkart.

Devin Wenig, president and CEO of eBay said, "eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world."

eBay said, it does not expect this transaction to have a material impact on its January guidance.