EBay will acquire 30 percent of flash sale site Rue La La
after purchasing the site’s owner GSI Commerce, the company announced March 28.
GSI currently owns 100 percent of the private sale site,
which frequently features discounted name-brand designer jewelry. A statement said eBay will divest 70 percent
of GSI’s holdings in Rue La La as well as another site, ShopRunner, as eBay
believes the business are not core to its long-term growth strategy.
The other 70 percent of the sites will be sold to a newly
formed holding company led by GSI founder and CEO Michael Rubin. As part of
the divestiture, eBay will loan the holding company $467 million and retain a
30 percent stake in Rue La La and ShopRunner.
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