BY Fraser Tennant
In a combination that forms a global live experiences marketplace, eBay is to sell its ticket exchange and resale company StubHub to online ticket marketplace viagogo in a deal valued at $4.05bn.
The definitive agreement is expected to see the complementary marketplaces of San Francisco-based StubHub and London-based viagogo sell hundreds of thousands of tickets daily across more than 70 countries.
“We believe this transaction is a great outcome and maximises long-term value for eBay shareholders,” said Scott Schenkel, interim chief executive 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.“
Founded in 1995, eBay is one of the world's most vibrant marketplaces. In 2018, it enabled $95bn of gross merchandise volume.
“It has long been my wish to unite the two companies,” said Eric Baker, founder and chief executive of viagogo and co-founder of StubHub. “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.”
Mr Baker co-founded StubHub while in business school but left before the business was sold to eBay for $310m in 2007.
“Bringing StubHub and viagogo together will allow us to drive further expansion and innovation, and create a more competitive offering for live event fans globally,” added Sukhinder Singh Cassidy, president of StubHub. “This provides a great opportunity to expand our business, pursue new partnerships and execute our strategy. We expect a seamless transition for all our employees, partners and customers, and we are excited for what the future holds.”
The sale of StubHub is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.