So news emerges that eBay (NASDAQ:EBAY) is in discussions to acquire a minority stake of around 37% in Gmarket (GMKT). This makes a lot of sense to me.
First, the plan fits perfectly into EBAY's expansion through partnership model.
Second, even though EBAY's existing wholly-owned auction.co.kr platform in Korea is suppose to be doing reasonably well, Gmarket has the momentum and is more likely to become a major player in the broader Asia.
Third, the stake could offer yet another entry point for PayPal in Asia.
And finally, Gmarket's valuation, relative to its growth prospects, is very reasonable.