US online eBay agreed to sell its ticket market StubHub to Swiss-based mostly rival Viagogo for $4.05 billion in cash, the two companies announced Monday.
The move will permit Viagogo, which already sells tickets for stay sport, music, and entertainment occasions, to boost its footprint to greater than 70 countries all over the world.
The deal comes after eBay’s leadership change earlier this year and the announcement that it was mulling gross asset sales within the face of slumping profits. “We believe this transaction is a good outcome and maximizes long-term value for eBay shareholders,” stated Scott Schenkel, interim chief executive of eBay, who had taken over following the departure of CEO Devin Wenig in September.
Over the previous several months, eBay’s leadership group and board of directors have been engaged in a thorough review of our present strategies and portfolio, and we concluded that this was the most effective path ahead for each eBay and StubHub.
Eric Baker, Viagogo’s founder and CEO, additionally co-founded StubHub whereas in business school, however, left earlier than the business was sold to eBay in 2007. Buyers may have a wider alternative of tickets, and sellers may have a wider network of consumers. Bringing these two firms together creates a win-win for fans—more selection and higher pricing.”
eBay is likely one of the success stories of the early internet period; however, lately, it did not keep pace with rival Amazon. In its most current quarter, eBay profits fell by more than half to $310 million as revenues have been virtually flat. The companies mentioned the sale is expected to shut by the end of the first quarter of 2020, pending regulatory approval.