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eBay To Sell It’s Ticketing Marketplace to Swiss-based Viagogo

US online giant eBay has agreed to sell its ticketing marketplace StubHub- valued at about USD 3.5-4.5 billion- to Swiss-based rival Viagogo for USD 4.05 billion in cash. The move by the US giant will allow Viagogo to further its reach in tickets sales for live sport, music and entertainment events, boosting its footprint to more than 70 different countries around the world.

With the sale expected to close by the end of the first quarter, subject to regulatory approval and customary conditions, the deal comes after eBay’s leadership change earlier on this year due to slumping profits. Scoot Schenkel, Intermin Chief Executive of eBay, who took over following the departure of CEO Devin Wenig in September said: “ 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 believe this transaction is a great outcome and maximizes longer-term value for eBay shareholders”.  

Eric Baker, Co-Founder of StubHub and CEO of Viagogo saw the opportunity as “made too much sense”, given his history with StubHub’s development and departure from the same.

More choice and better pricing for customer now a reality.

The companies are likely to operate independently for some time while executives examine the best way to integrate the business, representatives for eBay and Viagogo in order to realize efficiencies to reinvest in innovation. 

Baker further added that “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”. 

Other than its rival Amazon, eBay became one of the success stories of the early internet period. Failing to keep pace in recent years, eBay profits fell by more than half to USD 310 million as revenues were virtually flat. Only question that remains is whether the sale of StubHub help eBay pull itself back in the e-commerce platform?  

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