BREAKING NEWS

EBay to sell ticketing unit StubHub for $4.05 billion

EBay to sell ticketing unit StubHub for $4.05 billion
The eBay logo is pictured on a phone screen in this photo illustration in New York, U.S., July 23, 2019. REUTERS/Brendan McDermid/Illustration -
Copyright
BRENDAN MCDERMID(Reuters)
Text size Aa Aa

(Reuters) – EBay Inc will sell its ticketing unit, StubHub, in an all-cash $4.05 billion (3 billion pounds) deal to ticket reseller Viagogo Ltd, the companies said on Monday, nearly a year after the ecommerce major came under pressure from activist investors to hive off some of its businesses.

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.

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

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.

Shares of eBay were up nearly 3% at $36.02 in early trade on Monday.

Elliott Management declined to comment on the development, while Starboard Value did not immediately respond to Reuters’ request for a comment.

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

Goldman Sachs & Co LLC acted as financial adviser to EBay, while Wachtell, Lipton, Rosen & Katz and Quinn Emanuel acted as legal advisers, according to the joint statement by the companies.

J.P. Morgan is acting as financial adviser to Viagogo, while Skadden, Arps, Slate, Meagher & Flom LLP and Kirkland & Ellis LLP are its legal advisers.

(Reporting by Ambhini Aishwarya in Bengaluru; Editing by Maju Samuel and Rashmi Aich)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.
Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.