eBay’s acquisition of The Gifts Project started about eight months ago, and the deal finally closed this week. The selling price is rumored anywhere between ten million and twenty million dollars. The company was started two years ago by Ron and Maya Gura with Erez Dickman and Matan Bar.
This is eBay’s third acquisition in Israel. In 2005, the retailer bought Shopping.com for $620 million, and in 2008 it purchased Fraud Sciences for $169 million.
According to The Marker, which is the English version of Haartz, the Israeli firm will become an eBay development center in its country. The Gifts Project will form into eBay’s Israel Social Center and focus on building social shopping platforms and product features for eBay Marketplaces.
The purchase enables the California Internet auction company to offer the purchasing of gifts. The eBay Group Gift feature enables any user to type in the name of a friend or to import it through Facebook Connect. The user can then choose an event for which the gift is intended. An event can be a birthday, anniversary, graduation or baby shower. The user then receives a list of possible gifts for purchasing on eBay that are based on the friend’s areas of interest on Facebook. Users can then invite other friends to join in the purchase by using Twitter or Facebook.
“Not only will eBay’s immense network of buyers and sellers allow us to offer the benefits of social commerce to millions of people worldwide, it will also help us achieve our mission of getting people the gifts they really deserve, allowing friends and family to chip in for each other’s gifts,” said the Gifts Project on the company’s blog.