Bought and sold
Fledgling Australian online auction service sells out to multifaceted media company.
Two online auction junkies who started their own business three years ago have cashed in as their new owners prepare to challenge the dominance of eBay.
Philip Druce, 36, and Kelvin Yip, 28, created OZtion – "it's Aussie for auction" – in early 2005 after becoming frustrated with what they saw as eBay's lack of functionality and constant rule changes.
After building a market share of around 10 per cent, and becoming the second biggest consumer-to-consumer auction website in the Australia, they have agreed to sell the business to Jumbuck Entertainment for a combined $1 million cash, a further $1 million in shares, and an undisclosed earn-out based on revenues in 2009/10.
Jumbuck CEO Adrian Risch is hoping to accelerate OZtion's growth, taking advantage of an apparently parochial client base – he points out eBay Australia is actually based in Switzerland – and similar success from the TradeMe website in New Zealand.
Risch and Druce say the recent ban by eBay Australia on all forms of payments apart from PayPal and cash on delivery had also sparked a big switch to OZtion, with a 300 per cent increase in the daily rate of new accounts.
Philip Druce, 36, and Kelvin Yip, 28, created OZtion – "it's Aussie for auction" – in early 2005 after becoming frustrated with what they saw as eBay's lack of functionality and constant rule changes.
After building a market share of around 10 per cent, and becoming the second biggest consumer-to-consumer auction website in the Australia, they have agreed to sell the business to Jumbuck Entertainment for a combined $1 million cash, a further $1 million in shares, and an undisclosed earn-out based on revenues in 2009/10.
Jumbuck CEO Adrian Risch is hoping to accelerate OZtion's growth, taking advantage of an apparently parochial client base – he points out eBay Australia is actually based in Switzerland – and similar success from the TradeMe website in New Zealand.
Risch and Druce say the recent ban by eBay Australia on all forms of payments apart from PayPal and cash on delivery had also sparked a big switch to OZtion, with a 300 per cent increase in the daily rate of new accounts.
Share this article and show your support
Call 1300 880 160
Start a chat
Schedule a call
