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Naspers (which owns OLX) is bidding on eBays classifieds business (that includes Gumtree)

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In February the Wall Street Journal reported that eBay was taking steps to sell off its classifieds business which could be worth roughly $10 billion.

A few names that were thrown around as interested parties were private equity groups (TPG, Blackstone), South Africa's Naspers and German publisher Axel Springer.

Recent reports state that both Naspers (via Prosus), Axel Springer (who is teaming up with KKR), Norwegian marketing group Adevinta and a consortium of private equity companies consisting of Blackstone, Permira and Hellman & Friedman have made bids.

Followers of the local internet landscape will remember that Naspers spent a considerable amount of money marketing OLX in South Africa only to see eBay owned Gumtree retain pole position

Now Naspers will be looking to buy their way to the top. Or will they? Facebook Marketplace is already widely used in South Africa and many use it similar to Gumtree to run a buying and selling business, it also has a far better trust factor built-in (friends, friends of friends). It is also launching a e-commerce function called Shops.

It remains to be seen, should Naspers prevail how Gumtree will change in South Africa considering its influential position, it is the market leader used by many entrepreneurs. Will it retain its static ad-supported model or will it branch (excuse the pun) into e-commerce as well.  
 


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It ain't much but it's honest work.

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Naspers unit closes in on eBay deal that could top R133-billion

Naspers unit Prosus, handed in the highest offer for eBay’s classifieds unit, putting the Naspers-owned business in pole position to win one of the largest auction processes this year, people familiar with the matter said.

The eBay board is scheduled to meet on Friday to formally choose a preferred bidder, the people said, asking not to be identified because the information is private. A sale of the classifieds business was expected to fetch more than US$8-billion (R133-billion), Bloomberg News has reported.

Prosus is competing against a private equity consortium — backed by Blackstone Group, Permira and Hellman & Friedman — and a separate proposal from Norwegian online marketplace Adevinta, the people said. The situation is fluid, and one of the rival bidders could still emerge on top, according to the people.

Shares of Prosus were down 0.1% at 11.53am in Amsterdam, giving the e-commerce investor a market value of €138-billion. The Euro Stoxx Technology Index rose 1%.

The eBay classifieds business includes a number of online marketplaces separate from the company’s eponymous auction platform. Its brands include Kijiji, which is commonly used in Canada and Italy, and Gumtree, a classifieds site popular in the UK, Australia and South Africa. It also owns Bilbasen, a Danish online vehicle marketplace, and British car search website Motors.co.uk.

Read more at Techcentral


Community liaison. 
It ain't much but it's honest work.

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