eBay Finalizes Sale of StubHub | Financial Buzz

eBay Finalizes Sale of StubHub

eBay Inc. is a global commerce leader including the Marketplace and Classifieds platforms. Collectively, the company connects millions of buyers and sellers around the world, empowering people and creating opportunity for all. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection.

eBay Inc. (NASDAQ: EBAY) announced the completed sale of StubHub to viagogo for USD 4.05 Billion in cash.  The resulted net proceeds summed up to USD 3.1 Billion.  The company is in the process of updating its capital allocation plans, including first quarter and full year guidance numbers.  eBay will expand its share buyback plan for 2020 from USD 1.5 Billion to USD 4.5 Billion.

“The completed sale of StubHub to viagogo is a great outcome both in terms of the $4.05 billion sale price and the potential StubHub has with its new owner,” said Scott Schenkel, interim CEO of eBay Inc. “The StubHub transaction reinforces our commitment to creating shareholder value and is consistent with other steps we have taken such as margin improvement, share buybacks and issuing dividends. We are operating with discipline and focus, improving financial performance and delivering improved customer experiences. On behalf of the eBay team, we’re excited to see how StubHub evolves in its next phase and benefits fans, partners and employees.”

For the first quarter 2020, net revenue is anticipated to range between USD 2.31 Billion and US 2.36 Billion.  Full year 2020 net revenue is now expected to range from USD 9.56 Billion to USD 9.76 Billion, both reflecting the impact of removing StubHub.