Rakuten Bought the Rebate Site: Ebates
James Gordon | On 10, Sep 2014
Without a doubt the Japanese eCommerce giant Rakuten has a big appetite buying US companies during 2014.
After they acquired “Viber” early in the year for $900 million to power up their domestic market, now the time for another US company to get “stolen” by Rakuten. Yesterday, the company officially agreed on the deal to get “Ebates” for around $1 billion.
What is Ebates?
This is an online rebate based in San Francisco, United States. It allows people to earn cash back, when buying different goods at stores for example like: Macy`s or Home Depot. On the Ebates pipeline, there are currently around 2,600 retailers, which have generated $167 million profit last year.
What Are the Outcomes for Rakuten?
This is part of the loyalty program, which Rakuten have already expanded in Japan, where customers can earn online toward discounts on their future purchases.
Ebates will help the company to offer this also in United States, comparing with the local eCommerce giants from Amazon and eBay. More and more companies are trying to breach this market in United States, which is very consumer-oriented country.
I doubt that this will be the last big acquisition from a company outside of United States border.
What`s your comment on this subject? What do you predict as the next big eCommerce deal?