March 29, 2011 in Business

Briefcase

 

EBay plans to buy GSI Commerce

SAN JOSE, Calif. – San Jose Internet commerce giant eBay Inc. intends to buy GSI Commerce, a Pennsylvania-based provider of online marketing services, for $29.25 a share, or $2.4 billion.

“Combined with eBay Marketplaces and PayPal, we believe GSI will enhance our position as the leading strategic global commerce partner of choice for retailers and brands of all sizes,” eBay CEO John Donahoe said in a statement Monday announcing the deal.

According to the news release, eBay expects the acquisition won’t affect earnings in the current fiscal year and will add to its profit starting in 2012.

The purchase price is at a 51 percent premium to the value of GSI shares when the stock markets closed Friday.

GSI has more than 180 customers in 14 merchandise categories, according to the news release. Under the terms of its agreement with eBay, GSI can seek competing bids through May 6, but eBay can respond with a “superior proposal.”

Associated Press

Volkswagen recalling 2011 Jetta sedans

HERNDON, Va. – Volkswagen of America is recalling about 71,000 2011 Jettas in order to reconfigure wiring related to its alarm system and horn.

The recall affects sixth-generation Jetta sedans built between March 2010 and March 2011.

No injuries or accidents have been reported.

Owners will receive notification by mail.

For more information, call Volkswagen at (800) 822-8987.

Associated Press

Harry & David files Chapter 11

Fruit basket and gift seller Harry & David filed for Chapter 11 bankruptcy protection Monday, brought down by a weak economy and a proliferation of competitors.

The Medford, Ore., company agreed with a majority of its senior creditors on a reorganization plan that will eliminate “substantial” debt and provide financing to restructure its balance sheet, according to court documents.

Harry & David Holdings Inc., which grew out of an orchard business about a century ago, has been struggling as businesses slashed corporate gift budgets and consumers cut spending in the weak economy.

The retailer expects to continue operating during the reorganization process.

Associated Press

NY Times charging for digital access

NEW YORK – The New York Times began charging Monday for full access to its website and mobile services.

The third-largest U.S. newspaper is charging $15 every four weeks, or $195 a year, to read more than 20 articles a month on its website. That fee also covers a subscription on the newspaper’s software for smartphones.

Readers who want unlimited access on the website and the Times’ software for Apple Inc.’s iPad tablet computer have to pay $20 every four weeks, or $260 annually. A digital subscription covering the website and both mobile options costs $35 every four weeks, or $455 annually.

Associated Press


Thoughts and opinions on this story? Click here to comment >>

Get stories like this in a free daily email