eBay is about to become a heck of a lot richer.
eBay and viagogo announced they have entered into a definitive agreement for the online bidding platform to sell StubHub for a purchase price of $4.05 billion in cash.
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“We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders,” said Scott Schenkel, interim chief executive officer of eBay Inc., in a statement.
“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. We firmly believe in the StubHub business and we are excited about its future growth potential with viagogo as its owner.”
Eric Baker, viagogo’s founder and CEO, also co-founded StubHub while in business school, but left before the business was sold to eBay for $310 million in 2007. He said that it’s always been his wish to unite the two companies.
“I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared future,” Baker said.
“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.”
Excited to begin @StubHub’s next chapter! @viagogo is acquiring us from @eBay for $4.05 billion. This is a massive opportunity for us, our fans, and our partners in 70+ countries globally. https://t.co/F8H12kSkTf pic.twitter.com/OKDNt1bGx5
— Sukhinder Singh Cassidy (@sukhindersingh) November 25, 2019
Sukhinder Singh Cassidy, president of StubHub, said bringing StubHub and viagogo together will allow the companies to “drive further expansion and innovation, and create a more competitive offering for live event fans globally.”
“This provides a great opportunity to expand our business, pursue new partnerships and execute our strategy. We expect a seamless transition for all our employees, partners and customers, and we are excited for what the future holds.”
The sale is targeted to close by the end of 2020’s first quarter.