Ebay explores potential StubHub sale
E-commerce giant Ebay is believed to be moving forward with the potential sale of StubHub, with “multiple” parties showing interest, reports CNBC.
Ebay, which bought StubHub for $310m in 2007, is reassessing its ownership of the resale marketplace following recommendations from investors.
“The company is actively reviewing the role and value of StubHub to determine the best path forward to maximise shareholder value,” an Ebay spokesperson tells IQ.
Activist hedge fund Elliott Management announced a US$1.4 billion stake in Ebay in January, equating to more than 4% of the company’s shares. Following the investment, Elliott reportedly put pressure on Ebay to part ways with the San Francisco-based ticketer.
“We’re making significant progress and actively reviewing the role and value [of StubHub]”
In its Enhancing Ebay Plan, Elliot suggests that StubHub is “worth considerably more than the value currently being ascribed” to it. The hedge fund indicates that “separating” from StubHub “would allow eBay’s management team to refocus its efforts solely on the core marketplace business.”
StubHub delivered revenue of $264 million in the second quarter of 2019. Ebay’s net income for the quarter totalled $403 million, with revenue at $2.7 billion.
According to the International Ticketing Yearbook 2018, StubHub is one of four major secondary market players in the United States, along with VividSeats, Ticketmaster and SeatGeek.
IQ has contacted StubHub for comment.
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