Marxque Inc.

SEOUL, South Korea (AP) -- EBay Inc. said Wednesday it plans to pay as much as $1.2 billion to purchase a majority stake in South Korea's top online marketplace.

San Jose, Calif.-based eBay and Gmarket said that eBay will make a cash tender offer of $24 a share to purchase all outstanding common shares and American Depository shares in Gmarket Inc. If successful, eBay said it would take a stake of at least 67 percent in Gmarket.

The release said the agreement calls for eBay to combine Gmarket with eBay's existing online marketplace in South Korea, Internet Auction Company.

"This deal creates strong operational synergies between the two market leaders, offers more opportunities for sellers and enhances our ability to serve complementary consumer segments," John Donahoe, eBay's president and chief executive officer, said in the release.

EBay said in September it received preliminary conditional approval from South Korean regulators for its potential purchase of a stake in Gmarket.

The venture is the latest for eBay into the online auction market outside the United States.