[커머스 격변기]Coupang under siege to take over eBay Korea

Let’s take a look at the trends in the retail industry facing a turbulent period.

The dominant evaluation is that Naver and E-Mart’s stake exchange is actually a means to contain Coupang. As Coupang continued its explosive growth, conglomerates built an allied front in order not to lose control of the e-commerce market. If the actual stake exchange is successful and an alliance between’Naver-CJ-E-Mart’ is formed, synergy is expected by linking’platform-logistics-offline store’.

The solidarity centered on Naver is not a direct attack on Coupang. However, there is ample room for difficulties in expanding the e-commerce market in the future from the perspective of Coupang, which is in a bleeding competition. In the market competition using platforms so far, observations have been steadily raised that there is a high possibility of becoming a winner-take-all structure because one side dominates the market in many cases.

Coupang to participate in the acquisition of eBay Korea

In this situation, the recent eBay Korea takeover is considered an important event that will determine the direction of the domestic e-commerce market. EBay Korea, which operates Gmarket, Auction, and G9, has 12% market share, ranking third after Naver (17%) and Coupang (13%). If any company acquires eBay Korea, it can quickly become a major player in the market.

Already, the eBay Korea takeover is showing signs of unexpected success. It is known that Kakao, Lotte, Shinsegae, GS Retail, and many other retailers have also received investment prospects (IM). Kakao can aim for a relatively weak e-commerce market expansion, and retailers such as Lotte and Shinsegae can make breakthroughs in the online distribution market.

It is known that Coupang has not received an IM and has not shown interest in eBay Korea so far. However, some analysts say that Coupang is a company that can create the greatest synergy when it acquires eBay. In addition, as preliminary bidding has not yet begun, it is difficult to prematurely judge Coupang’s absence from the acquisition of eBay Korea. It is also possible to skip the preliminary bidding and make a surprise appearance in the main bidding.

Lee Jin-hyup, a researcher at Yuanta Securities, said, “Coupang is the only candidate to acquire eBay Korea.” It is possible to secure a market share close to the market share and improve profitability through the open market.” It is the only operator that can enhance competitiveness while maintaining eBay Korea’s separate platform by utilizing Coupang’s full-filment service.

(Source = Yuanta Securities Report’Two Properties, eBay Korea and Delivery Hero Korea’.)

Even if Coupang participates in the future takeover of eBay Korea, the high selling price is expected to act as an obstacle. The selling price of eBay Korea is currently being talked about at 4 to 5 trillion won. It is evaluated that the ransom price of eBay Korea also increased as Coupang promoted listing on the New York Stock Exchange and received high corporate value.

However, some observers say that eBay Korea’s ransom price is measured somewhat higher, so the actual sale will not exceed 4 trillion won. An official in the securities industry said, “A lot of companies are receiving IMs, creating an unexpected box office atmosphere, but not many companies are willing to take over. I think it will be achieved under 4 trillion won.”

One of the factors that raises the possibility of an acquisition is Coupang’s recent increase in the public offering price. According to Bloomberg and Reuters of the United States on the 9th (local time), Coupang suggested a stock offering price of 32-34 dollars per share. This is a 4-5 dollar increase from the previously proposed 27-30 dollar per share. Accordingly, Coupang will be able to raise up to 4.6 trillion won.