On December 18, The Wall Street Journal reported that eBay will cease operations of its largest online auction site in China. Instead, it will partner with a similar website in the region.
eBay China will be replaced by Tom Online, based in Beijing, where eBay will hold a 49% stake, while the remainder will belong to Tom Online. Both companies announced plans to invest $60 million in future operations, with eBay contributing $40 million.
Currently, an eBay spokesperson has not confirmed this information. However, if this agreement comes to fruition, it would mark eBay’s biggest retreat since the company announced its plans to conquer major global markets.
It’s also important to note that although China is the second-largest Internet market in the world, only 3% of the items auctioned on eBay have originated from there in recent times.
The new Tom Online website is expected to be operational next year, while eBay will continue to manage online auction transactions in China for now.
