Following a “regular review” of its portfolio, eBay Inc EBAY has decided to divest itself of StubHub. The online marketplace will sell its ticket-sales facilitator to viagogo for $4.05 billion in cash.
What Happened With eBay
eBay announced Monday it has entered a definitive agreement to sell StubHub, which it had acquired for $310 million in 2007.
"We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders," interim CEO of eBay Scott Schenkel said in a press release. "Over the past several months, eBay's leadership team and Board of Directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub.”
Why It’s Important For StubHub
The transaction will fuse the inventory of two ticket marketplaces for live sports, music and entertainment events. The combined entity is expected to sell hundreds of thousands of tickets daily across the globe.
"It has long been my wish to unite the two companies,” Eric Baker, the founder of both viagogo and StubHub, said in a press release. "...Buyers will have a wider choice of tickets, and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans — more choice and better pricing."
The parties expect to close the deal before the second quarter of 2020.
eBay’s stock traded higher by 2.6% to $36.05 at time of publication. Live Nation Entertainment, Inc. LYV, which operates StubHub rivals Ticketmaster and Live Nation, rose 2% on the news.
Related Links:
Street Debates Whether Investors Should Buy eBay's Stock After Mixed Quarter
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
