eBay To Buy Korea’s Gmarket For $1.2B; Yahoo Cashes In

eBay (EBAY) late yesterday announced a deal to acquire Gmarket (GMKT), a south Korean online marketplace, for $24 a share, or $1.2 billion. Gmarket will be combined with eBay’s own Korean marketplace business, Internet Auction Co., although the two sites will both continue operating.

Earlier this week, there were reports that eBay had acquired a 34.2% stake in Gmarket from its largest investor.

GMKT this morning is up $3.80, or 19%, to $23.76. EBAY is up 37 cents, at $14.69.

The deal also should be a modest positive for Yahoo (YHOO), which owns 10% stake in GMKT. According to Reuters, the deal will result in $120 million in proceeds, and a $52 million pre-tax gain for the company.