13:34 27/11/2019 | 7newstar.com
Total post : 1,458
eBay confirms that it’s offloading its ticket marketplace StubHub to Viagogo in an all-cash deal worth $4.05 billion
(Business) This represents a substantial markup on the $310 million eBay paid for the company back in 2007 and a 400% premium on the roughly $1.2 billion StubHub generates in revenue annually. The idea was that focusing on its marketplace business, which currently generates most of eBay’s revenues, would allow the company to improve its core business without distractions.
The other two main components of eBay’s business were its classifieds unit, which operates under various brands globally and StubHub, which we now know is being sold to Viagogo in a deal that should close in Q1 2020.
Certainly, eBay is no stranger to spinning out companies. Back in 2014 it revealed plans to spin PayPal into a standalone company, following a long and contentious feud with activist investor Carl Icahn. And in 2015 eBay finally made PayPal a standalone company once again. For context, PayPal now has a market cap of $120 billion, roughly 4 times that of its former parent company.
The ongoing divestment saga led CEO Devin Wenig to step down back in September, with CFO Schenkel taking the helm on a temporary basis. Wenig tweeted at the time that his reason for leaving was a lack of agreement with the board on the company’s new direction, so it seemed fairly clear something was in the works.
While the synergies between StubHub and Viagogo are obvious, given that they both operate event ticket marketplaces, it’s worth noting that StubHub and Viagogo also share a cofounder. Eric Baker helped create StubHub while at Stanford University back in 2000, but he departed before it was bought by eBay in 2007. Baker launched Viagogo out of Europe in 2006 and has served as CEO ever since.