Dive Brief:
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EBay announced on Monday that it agreed to sell StubHub to ticket vendor Viagogo for $4.05 billion in cash, according to a company press release.
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The deal is expected to close by the end of the first quarter of 2020, pending regulatory approval and customary closing conditions.
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"We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders," eBay's interim CEO, Scott Schenkel, said in a statement.
Dive Insight:
The acquisition of StubHub is a full-circle moment for Viagogo's CEO Eric Baker. Baker co-founded StubHub while in business school, but left prior to eBay's acquisition of the company in 2007 for $310 million.
"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 in a statement.
During a conference call with analysts in July, eBay's then-CEO Devin Wenig hinted at a possible sale of both its StubHub and Classified businesses. "We're making significant progress in actively reviewing the role and value of StubHub and Classifieds in our portfolio," he said at the time. (EBay announced in early fall that Wenig was stepping down from his role as CEO, with Scott Schenkel taking over in the interim.)
EBay's third quarter earnings report at the end of October revealed that StubHub's revenue increased 5% from the year-ago period to $306 million, even as the company reported that total revenue was flat year over year.
When combined, Viagogo and StubHub will sell tickets across more than 70 countries.
