Business Commentary for Rational Individuals

Yahoo! to Buy into South Korean GMarket

Dr. Bill Belew

Issue I - June 10, 2006

Introduction by Mr. Stolyarov: Yahoo! is diversifying its assets and revenue sources from simply being a search engine to entering the online retail market and becoming a prominent player there. Dr. Belew describes Yahoo!'s recent bid to acquire the South Korean retailer GMarket as a prime example of this. This pursuit is wise; if one of Yahoo!'s revenue sources someday happens to be doing poorly, Yahoo! will always be able to rely on the others.

Yahoo is planning to pony up $60 million to buy a 10% share in South Korea's No 2. online retailer GMarket.

South Korea has one of Asia's fastest growing e-commerce industries.

Yahoo will buy its steak, I mean, stake, from the venture capital firm Oak Investment Partners.

It seems Oak Investment is the only significant outside institutional investor in GMarket; .in other words, Yahoo had to go through them to get their foot in the door.

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Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, PanAsianBiz, for news and discussions about business and current events in Russia and Asia. See ZhongHuaRising for Dr. Belew's reports on business in China and RisingSunofNihon on business in Japan.

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