Ebay to sell StubHub to Viagogo for $4.05bn
Ebay has agreed to sell its ticketing business, StubHub, to rival Viagogo for $4.05bn (£3.15bn) in cash.
The deal is expected to close by the end of the first quarter of next year, subject to regulatory approval and customary closing conditions.
Ebay’s interim chief executive Scott Schenkel said: "We believe this transaction is a great outcome and maximises long-term value for eBay.
"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."
Viagogo’s founder and CEO, Eric Baker - who also co-founded StubHub but left before the business was sold to eBay in 2007 - said: "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. 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."
Ebay said earlier this year that it was considering the sale of StubHub and its classifieds business amid pressure from activist investors Elliott Management and Starboard Value.
At 1455 GMT, eBay shares were up 1.7% at $35.73.