Japanese ecommerce giant Rakuten has agreed to buy up cash-back rebate site Ebates for $1 billion, the company announced in a press release earlier today.
Pairing commerce with coupons is an age-old idea, but Rakuten's move to purchase a U.S. company may have just as much to do with its plans for expansion as it does with its desire to provide customers with deals.
Rakuten has been busy building a stock of companies that may help it become a more global company. Purchases include e-reader company Kobo for $315 million in 2011; $250 million for Buy.com in 2013; and popular messaging app Viber for $900 million in February of this year. Rakuten has also significantly invested in digital scrapbook Pinterest.
Ebates, a coupon clipper for the modern day, is based in San Francisco and claims to work with 2,600 e-retailers. The company generated $167 million in net revenue last year.
Analysts have been skeptical about Rakuten's ability to permeate the already highly competitive U.S. market.