eBay in Tentative Deal for Gmarket Stake

eBay reached a tentative agreement to buy a controlling stake in South Korea's Gmarket for $24 a share.
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eBay

(EBAY) - Get Report

reached a tentative agreement to buy a controlling stake in

Gmarket

(GMKT)

, South Korea's largest online auction service by revenue and market share, for $24 a share, the

Wall Street Journal

reports, citing a source.

eBay and the sellers of the 34.2% stake in Gmarket -- Interpark Corp. and its Chairman Lee Ki-hyong -- are expected to sign off on the deal Thursday after the boards of the companies meet, the

Journal

reports.

Representatives of eBay and Interpark declined to comment for the

Journal

.

The price is a 24% premium to Gmarket's closing price Tuesday of $19.34.

The stock rose sharply earlier this week on a report from online newspaper

edaily

that eBay would buy the 34.2% stake in Gmarket for $24 a share, or $413 million.

With the deal, eBay would become the largest player in the South Korean electronic commerce market. An eBay subsidiary, Internet Auction, already operates the second-largest auction Web site in South Korea, according to the

Journal

.