Ebay has announced that it is selling its businesses with Stubhub in a $4 billion deal. According to CNN, eBay has sold to Viagogo, a European ticketing company. Ebay CEO Scott Schenkel stated in a press release that the deal “maximizes long-term value for eBay shareholders” and mentioned that it is the “best path forward for both eBay and StubHub.” Viagogo’s founder and CEO Eric Baker had been wishing for this to happen, stating that it “creates a win-win for fans.” The sale is scheduled to close in the first quarter of 2020, subject to regulatory approvals.
The idea to sell Stubhub has been in motion since March. The company announced that it was initiating a strategic examination of its assets following pressure from activist investors to spin off or sell StubHub with them being propelled by Eliot Management, who has a 4% stake in the company since January.
Like StubHub, Viagogo also resells tickets to events, mostly catering to sports including European football, rugby, and cricket. Stubhub sells tickets to a variety of shows including sports and concerts and is noted for providing secure and safe transactions for tickets, preventing scammers. Ebay bought the company in 2007 for $310 million.
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