EBay Proposes to Unload Enterprise Business1/22/2015 6:10 PM | Business News
Several months after announcement of separation of eBay marketplace and its payment unit Paypal, eBay announced more movements yesterday including layoff of 2,400 employees and its plan to unload newly acquired enterprise business, eBay Enterprise (formerly known as GSI Commerce). The company plans either sell its enterprise business or file an IPO.
EBay Enterprise, specializing in creating, developing and running online shopping sites for brick and mortar brands, retailers and chain stores, also provides a variety of marketing, consumer engagement, customer care, payment processing, fulfillment, fraud detection, and technology integration services and has over 1000 clients. It provides services for companies such as Zales, iRobot, Timberland, Sports Authority, Dick's Sporting Goods, RadioShack.
Ebay aquired this enterprise business from GSI Commerce in 2011 for $2.4 billion and changed to the current name, eBay Enterprise, in 2013.
According to the current CEO John Donahoe , although eBay Enterprise runs a good business, it has increasely divergent oppurtunities and limited synergy with eBay. Separation will make both business units more focused in their respective priorities moving forward.