eBay and MercadoLibre Join Forces in Latin America
San Jose, California and Buenos Aires, Argentina, October 1, 2001 – eBay (NASDAQ: EBAY; www.ebay.com ), the world’s online marketplace, and MercadoLibre.com, the leading Latin American online trading site, have entered into a strategic business relationship in Latin America. MercadoLibre will acquire iBazar Com Ltda., the Brazilian subsidiary of iBazar SA, which was recently acquired by eBay. In return eBay will receive a 19.5% ownership interest in MercadoLibre and will share best practices with the company. The relationship enhances MercadoLibre’s leadership position in Brazil and the rest of Latin America, and expands eBay’s reach throughout the region.
“This is an important step forward in our global strategy and we are very happy to team up with MercadoLibre in Latin America,” said Meg Whitman, president and CEO of eBay Inc. “MercadoLibre’s management is doing a superb job in building the leading online trading company in the region and it’s a great match for eBay.”
“eBay’s alliance with MercadoLibre confirms the company’s leadership in the region,” said Marcos Galperin, CEO and co-founder of MercadoLibre.com. “The ongoing relationship with eBay will help MercadoLibre reach new levels of growth and success as well as translate into a more vibrant marketplace for our community of users.”
eBay assumed ownership of iBazar Com Ltda. in May 2001 as part of its acquisition of iBazar SA, the Paris-based online trading company. iBazar currently has more than 450,000 registered users in Brazil who list more than 70,000 items for sale each month.
Terms of the agreement were not disclosed.
MercadoLibre.com is the principal online auction site for the Spanish- and Portuguese-speaking communities in Latin America. MercadoLibre.com currently operates in 10 countries including Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Uruguay, Spain, the United States and Venezuela. The company’s business is based on trade between individuals and small businesses who regularly buy and sell products and services in more than 20 major categories. MercadoLibre has raised more than US$54 million in two rounds of financing and its main shareholders include JPM Partners, Goldman Sachs, GE Capital, Hicks Muse Tate, Furst and CRI Santander Central Hispano, and now eBay.
eBay is the world’s online marketplace. Founded in 1995, eBay created a powerful platform for the sale of goods and services by a passionate community of individuals and businesses. On any given day, there are millions of items across thousands of categories for sale on eBay, as well as on Half.com, eBay’s site dedicated to fixed price trading. eBay enables trade on a local, national and international basis with customized sites in markets around the world.