Ebay to sell ticketing unit StubHub for $4.05 billion
today Nov 25, 2019
Ebay Inc will sell its ticketing unit, StubHub, in an all-cash $4.05 billion (3 billion pounds) deal to ticket reseller Viagogo Ltd, the companies said on Monday, nearly a year after the ecommerce major came under pressure from activist investors to hive off some of its businesses.
In January, activist investors Elliott Management Corp and Starboard Value had urged eBay to sell its ticket sales business and eBay Classifieds Group as part of a plan that could double the company's value.
Elliott valued StubHub between $3.5 billion and $4.5 billion, while eBay Classifieds between $8 billion and $12 billion.
Following the activist investors' request, eBay made changes to its board of directors in March. It announced a review of its StubHub and eBay Classifieds businesses as part of an agreement with activist investors to avert a proxy contest.
Shares of eBay were up nearly 3% at $36.02 in early trade on Monday.
Elliott Management declined to comment on the development, while Starboard Value did not immediately respond to Reuters' request for a comment.
The deal, which is expected to close by the end of the first quarter of 2020, follows the exit of former Chief Executive Officer Devin Wenig in September, following his differences with the company's revamped board.
Goldman Sachs & Co LLC acted as financial adviser to EBay, while Wachtell, Lipton, Rosen & Katz and Quinn Emanuel acted as legal advisers, according to the joint statement by the companies.
J.P. Morgan is acting as financial adviser to Viagogo, while Skadden, Arps, Slate, Meagher & Flom LLP and Kirkland & Ellis LLP are its legal advisers.
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