eBay (NASDAQ: EBAY) announced on Monday that it has agreed to sell StubHub to Swiss ticket vendor Viagogo for USD 4.05 Billion in cash. eBay shares slightly rose by 2% during Monday’s late afternoon trading session.
Viagogo is a worldwide ticket marketplace for live sports, music and entertainment events. Similarly, StubHub is a popular U.S. ticket marketplace for similar events.
The combination of Viagogo and StubHub creates a major global marketplace, spanning across 70 different countries. The combined company will offer customers a wider selection of tickets, while sellers and artists will have the ability to more effectively reach a broader global audience.
“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. “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.”
Eric Baker, Viagogo’s Co-founder and Chief Executive Officer, who also co-founded StubHub while he was in business school, said he left before the business was sold to eBay for USD 310 Million in 2017 due to differences with his partner.
After leaving StubHub. Baker remained a shareholder, but was not able to dictate the sale of the Company to eBay.
“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.
The transaction is expected to close by the end of the first quarter in 2020. However, CNBC reported that the companies are likely to operate independently for some time while executives examine the best way to integrate the businesses.
Additionally, the two companies did not report any leadership changes in the agreements of the transaction.