Ebay Sells Ticket Resale Company Stubhub and Buys Back Shares

February 14, 2020 2:59 pm

BEIJING (PingWest) — E-commerce giant ebay Ic. ((Nasdaq: EBAY)) announced Thursday it completed the sale of Stubhub to viagogo in a $4.05 billion cash deal.

"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.”

The transaction results in net proceeds of $3.1 billion. ebay is expanding its share buyback for 2020 from $1.5 billion to $4.5 billion with such amount, which will increase the ownership stake of each investor in the company and provide greater shareholder value.