EBay spikes on a report that it's nearing a deal to sell StubHub for $4 billion
- EBay is nearing a deal to sell StubHub to the Swiss ticket reseller Viagogo for $4 billion, The Wall Street Journal reported Monday.
- Shares of eBay surged as much as 6% on the news.
- The deal could close as early as Monday, according to the report. It would bring StubHub back under the control of cofounder Eric Baker, now the CEO of Viagogo.
- Watch eBay trade live on Markets Insider.
Shares of eBay surged as much as 6% Monday on news that it is nearing a deal to sell StubHub, its ticketing business, for $4 billion, The Wall Street Journal reported citing people familiar with the matter.
The deal could close as early as Monday, Cara Lombardo and Corrie Driebusch of The Journal reported. EBay is in talks to make the sale to Viagogo Entertainment Inc., a Swiss ticket reseller, according to the report.
The company purchased StubHub in 2007 for $310 million. In the third quarter this year, StubHub's revenue grew 5% to $306 million, eBay reported. That accounted for about 12% of eBay's $2.6 billion revenue in the quarter.
If the deal is confirmed, it would bring StubHub back under the control of Eric Baker, one of its cofounders who is now the CEO at Viagogo.
Pressure to sell StubHub started in January when activist investors Starboard Value and Elliott Management began to persuade eBay to sell its ticketing and classified ads businesses, The Journal reported.
In February, both activist investors won seats on eBay's board as part of a settlement, according to the report. Elliott said eBay could sell StubHub for between $3.5 billion and $4.5 billion, and its classified businesses for $8 billion to $12 billion, The Journal reported.
Ebay has been working to strategically pick its battles with Amazon and lean on its strengths as a resource for small business owners and independent sellers, Business Insider's Bethany Biron reported.
Ebay is up 25% year-to-date through Friday's close.
