eBay bought StubHub for $310 million all the way back in 2007, but now the online reseller is officially selling off the ticket reseller to European rival Viagogo in a $4 billion, all-cash deal. The sale means that Viagogo/Stubhub will now be able to reach consumers in over 70 countries worldwide. The deal was initially sparked by investors Elliott Management Corp. and Starboard Value LP, writes Tech Crunch, who “began to pressure eBay to exit businesses that weren’t a part of its core marketplace.”
“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.”
By an interesting twist of fate, Eric Baker, viagogo’s founder and CEO, also co-founded StubHub but left ahead of its acquisition.
“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.”
What it means in reality for fans will take more time to suss out. The deal is expected to close in the first quarter of 2020, subject to regulatory approval and customary closing conditions.
via Tech Crunch