History repeating: Auction site Carnaby buys fixed-price site GrabABargain
Taking a page from eBay Inc., online auction site Carnaby.com Inc. has bought discount, fixed-price online company GrabABargain.com Inc. The acquisition allows the company to offer both an auction option and a fixed-price discount option to sellers, in much the same way that Half.com provided a fixed-price discount operation to eBay.
Carnaby says it was interested in acquiring GrabABargain, which lists 3.5 million items for sale by individuals, as a way to create an alternative to powerhouse eBay, whose name is practically synonymous with online auctions. “We feel that with this acquisition we have turned the online auction market into a two horse race,” said Rick Antunes, chairman and CEO of Carnaby. The purchase price was not disclosed.
Carnaby expects to launch a $1 million loyalty marketing campaign as part of its efforts to raise its profile as an alternative to eBay.
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