EBay to sell ticketing business StubHub to Viagogo for $4.05 bn

EBay has agreed to sell ticketing business StubHub to ticket reseller Viagogo for $4.05 billion in cash.
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In January, activist investors Elliott Management Corp and Starboard Value had urged eBay to sell its ticket sales business and eBay Classifieds Group as part of a plan that could double the company’s value, Reuters reported.

Elliott valued StubHub between $3.5 billion and $4.5 billion, while eBay Classifieds between $8 billion and $12 billion.

Viagogo Chief Executive Officer Eric Baker had co-founded StubHub but left before the business was sold to eBay for $310 million in 2007.

Following the activist investors’ request, eBay made changes to its board of directors in March. It announced a review of its StubHub and eBay Classifieds businesses as part of an agreement with activist investors to avert a proxy contest.

In 2014, Carl Icahn asked eBay to spin off its payments unit PayPal, a move which the company followed through in 2015.

The deal, which is expected to close by the end of the first quarter of 2020, comes after the exit of former CEO Devin Wenig in September, following his differences with the company’s revamped board.

The e-commerce company is expected to provide an update on its classified ad business next year.

Last month, eBay forecast its holiday quarter revenue below estimates, as it faces competition from Amazon.com and Walmart.