Earthblog

In an effort to expand it’s global retail reach, Japanese e-commerce company, Rakuten announced the acquisition of a leading online U.S. retailer, Buy.com . The $250 million dollar buyout would put Rakuten in position as the world’s largest online retail marketplace. Combined, both companies would bring 35,000 global merchants and offer consumers over 60 million products. The acquisition will be handled by Rakuten USA (based in Boston), the U.S. subsidiary of Ratuken.

To date, Rakuten, in the Asian market, tops Amazon Japan’s sales and boasts 64 million members and $3.2 billion in sales. This isn’t the first move that Rakuten has made to further reach the American market. Five years ago, the Japanese online retailer acquired Linkshare, a New York-based advertising network for a whopping $425 million.  Rakuten CEO Hiroshi Mikitani views this Buy.com acquisition as an opportunity to truly expand into the U.S. e-retail market and would allow sellers and buyers to connect no matter where they are located.

Here is a glance at both companies as they stand before the deal is completed next month.

Company: Rakuten, Inc.

Founded: February 7, 1997

Based in Tokyo, Japan

Website: rakuten.co.jp

Rakuten, Inc. is currently ranked as the 5th most popular site in Japan for online shopping and has over 28,000 merchants and 35 million different products.

Company: Buy.com

Founded: 1997

Based in Aliso Viejo, California, U.S.

Acquired by Rakuten, Inc. on May 20, 2010, for $250 million dollars.

Buy.com brings more than 12 million customers with a focus on entertainment and technology retail. Part of the dot-com boom from the late 1990s.

Tags: ecommerce | shopping | online | georgia | import | export