Business

EBay to sell StubHub to competitor viagogo for $4.05 billion US

EBay is selling StubHub to ticket seller viagogo for $4.05 billion US. The addition of StubHub will allow viagogo to sell tickets in more than 70 countries and gives buyers access to a wider selection of tickets.

With this acquisition, viagogo will be able to sell tickets in more than 70 countries

In this July 11, 2019, file photo, an Ebay app is shown on a mobile phone in Miami. EBay is selling StubHub to ticket seller viagogo for $4.5 billion. (Wilfredo Lee/The Associated Press)

EBay is selling StubHub to ticket seller viagogo for $4.05 billion US in cash.

The transaction is part of a review that eBay undertook earlier this year following pressure from an activist investor. The San Jose, California-based company then said it was also reviewing options for its classified ads business.

EBay Inc. bought StubHub in 2007 for $310 million. Both StubHub and the classifieds business each brought in less than 10 per cent of eBay's total revenue last year.

The addition of StubHub will allow viagogo to sell tickets in more than 70 countries and give buyers access to a wider selection of tickets.

Viagogo's founder and CEO Eric Baker is a StubHub co-founder. In a statement, Baker said it has been his longtime wish to unite the two companies.

The sale is targeted to close by the end of 2020's first quarter.

Under pressure

EBay has been under pressure from activist investor Elliott Management to sell off some of its sites.

In March, eBay said it might sell its StubHub and its classified ads business to focus on its main online sales site. It also added two new directors to its board at that time, selected by Elliot Management.

Then in September, CEO Devin Wenig stepped down over differences in with the board of directors.

"In the past few weeks it became clear that I was not on the same page as my new board," Wenig tweeted at the time.  "Whenever that happens, its best for everyone to turn that page over."