eBay sells StubHub for $4 billion
eBay is getting out of the online ticket resale business.
The e-commerce company has entered into a definitive agreement to sell its StubHub subsidiary to Viagogo, a Swiss online ticket marketplace, for $4.05 billion USD in cash. Viagogo is a worldwide ticket marketplace for live sport, music and entertainment events, and Stubhub is a ticket marketplace in the U.S.
Combined, these marketplaces will sell hundreds of thousands of tickets daily across more than 70 countries. Eric Baker, Viagogo’s founder and CEO, also co-founded StubHub, but left before the business was sold to eBay for $310 million in 2007.
“We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders,” said Scott Schenkel, interim CEO of eBay Inc. “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.”
“It has long been my 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.”
The sale is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.
eBay says it regularly reviews its portfolio to ensure that its investments and assets support its strategic direction and adhere to value creation. Goldman Sachs & Co. LLC is acting as financial advisor to eBay. Wachtell, Lipton, Rosen & Katz and Quinn Emanuel are acting as legal advisors to eBay. J.P. Morgan is acting as sole financial advisor and sole underwriter of the committed debt and preferred equity financings for Viagogo. Skadden, Arps, Slate, Meagher & Flom LLP and Kirkland & Ellis LLP are acting as legal advisors for Viagogo.