Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Nov 25 2019 16:44:20

What Should eBay Do with Billions from StubHub Sale?

By: Ina Steiner

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eBay is selling its StubHub ticket-resale marketplace for $4.05 billion, nearly a year after activist investor Elliott Management forced its way into the picture and recommended eBay consider selling StubHub, eBay Classifieds, and possibly the eBay marketplace itself.

The acquiring company, viago, is headed by StubHub cofounder Eric Baker, who had left before eBay acquired StubHub in 2007 for $310 million.

eBay's Scott Schenkel, who took over as interim CEO after Devin Wenig's departure on September 25th, said the eBay leadership team and Board of Directors "concluded that this was the best path forward for both eBay and StubHub" and said it maximized long-term value for eBay shareholders.

Schenkel told CNBC that proceeds from the deal will be put toward stock buybacks, dividends and M&A investing. 

Think there's any room for eBay to "spare a square" for customers? What would you ask for as a buyer and as a seller? After all, helping buyers buy and sellers sell is also adding value for shareholders. 

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by: eBay Shill Buster This user has validated their user name.

Tue Nov 26 11:21:48 2019

I Must be Crazy, the entire platform needs to be rebuilt from scratch with new programming that can be documented and is open source, the old eBay programming is what programmers call spaghetti code, Google the term, it can't be fixed.

This is why they need to hire a CEO with a software engineering background as Google and Microsoft did years ago, that or the entire company will go the way of Yahoo.

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by: RL15 This user has validated their user name.

Tue Nov 26 12:39:52 2019

they should give the Grifter and Mister Walmart a raise.

since those 2 do nothing, makes them in line for a nice pay increase.

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by: thievesBay This user has validated their user name.

Tue Nov 26 13:09:00 2019

@toolguy LOL how many shares of eBay do you think retail investors own? It's a TINY percentage. eBay has already poured $Billions into buybacks and how's the stock doing? Not so good? Where's the big pop from this news? It's not there. Maybe, just maybe, the Street now rightly sees eBay in decline and deservedly so. That's what happens when revenue is consistently flat and GMV is in decline. There's only so long a company can rely on smoke and mirrors. And that's exactly what eBay is.

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This user has validated their user name. by: CanBrit

Tue Nov 26 14:19:39 2019

It's been said these sell off's are to allow eBay to focus on it's core business. I find that extremely confusing as it's core business has only gotten worse with no end in sight. They still haven't found a new CEO which is critical, especially to get one that's also a wizard with technology and eCommerce.

Who they get to replace Wenig will signal either some slight potential to bring Ebay back to it's former glory or will be the proverbial nail in the coffin. Since they have been awful at bringing any sort of talent to the top position, I'm not feeling optimistic that the right person will be found.

I think they should sell everything off and be done with it.

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by: eBay Shill Buster This user has validated their user name.

Tue Nov 26 14:24:21 2019

PE is price to earnings Tool, but eBay is overvalued, it should be trading for about 15 bucks in the real world. All tech stocks are way overvalued and have went straight up since the crash in 2008.

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by: pace306 This user has validated their user name.

Tue Nov 26 15:05:27 2019


Tool

you cant compare eBay to other sites "in the same space" as the rest of them (most) OWN things, eBay owns nothing except a few buildings, Walkers West, and Mr Seller Protections toupee.

Amazon, Walmart, Overstock all have warehouses full of goods, planes, distributions centers etc.

eBay owns and does nothing - every penny they make (steal) is pure profit.

Anyone can post crazy numbers - its what they represent that counts.

Lets see what eBay does Q4, Q1 2020 when theres no more Paypal, or Stubhub to lean on when asked for numbers.

eBay cant (like Amazon) post %20 increases - just measly %2-3 ..... WHY?

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by: purpleiris This user has validated their user name.

Tue Nov 26 16:01:14 2019

As a buyer, seller AND business owner, I would recommend they put a significant chunk into improving the site for all parties. Turn things around for eBay and make it the valuable site it once was.

At this point, though, the greedy investors have squeezed as much as they can out of this cash cow, so all they want to do is sell everything and run with the money. This is exactly why the investment firms should have absolutely nothing to do with businesses they have absolutely no experience in. They're only in it for the money, not developing a viable business for its users.

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by: purpleiris This user has validated their user name.

Tue Nov 26 16:04:44 2019

I also don't think hiring a CEO with software engineering experience is the answer. Not unless that person also has eCommerce experience -- and not just programming for the industry, either. I mean actual experience selling online.

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by: Silver Ice King This user has validated their user name.

Tue Nov 26 16:10:34 2019

@CanBrit

It is not at all unusual for a company to not replace a key executive in the 4th quarter of the year as that is usually the 1 quarter you do not want to mess with as we all understand.  Ebay usually just cannot help itself because management has been doing all they can to destroy the site for various reasons depending on the CEO at the time.  I am hoping that with Elliott on the board that they are listening to what has been said in the past as well as the knowledge that Elliott brings to the table so are interviewing but not making any commitments regarding changes until 2020.

If they wind up making Schenkel the permanent CEO then that to me is the indicator that Ebay has given up and is just going to sell everything off for as much as they can get and dissolve Ebay as it was obvious from the start that he does not have the skillset to run Ebay.  If they make an announcement shortly after the first of the year and bring in a solid CEO who has the skillset that Ebay needs to make the necessary changes and move forward then i give Ebay a chance to turn things around.  I do believe that is what Elliott wants as that is also what will bring the largest ROI to the current investors which is exactly what Elliott stated they wanted when they first announced their push.

The first of the year will show who has the power now at Ebay and which direction things are going to go.  If the current BOD maintains the power its game over for Ebay as far as being any type of significant player in the marketplace moving forward.

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by: thievesBay This user has validated their user name.

Tue Nov 26 16:19:39 2019

Oh, and toolguy, you go ahead and buy all the lowest P/E stocks you can find. Guaranteed you will lose a lot of money. Many times there's a reason for that. No growth, declining GMV, declining sentiment, no future prospects, etc. Sounds exactly like eBay doesn't it? eBay stock is still at least 3x overvalued. And don't come back and say Amazon is 4x like you've done before. eBay is clearly NOT Amazon!

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by: purpleiris This user has validated their user name.

Tue Nov 26 16:37:57 2019

Thinking about it, there has to be a college graduate out there somewhere who made extra money selling things online. Someone with a degree in business would be preferred.

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by: Geetar This user has validated their user name.

Tue Nov 26 16:41:40 2019

I bet Elliot probably told Skankl, that if he goes along with selling Stub-Hub and is a nice little boy that he will make him CEO. Thats also why midway between now and Devil's "Exit", there was a compensation package announcment for the "Interim" CEO. Dont forget this guy Skank'l had no education beyond undergraduate school. As far as I know. He knows his prospects beyond Ebay are limited. So I am sure he wants to get as much as he can.

Now that Elliot has Skankl at his calling, why would Elliot want another CEO. People like Elliot get off on power trips and this will just feed his ego. Not to mention whatever he wants to do as far as direction for the company. All Elliot has to do is throw a few nickles at Skanl's feet and he gets what he wants.

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by: eBay Shill Buster This user has validated their user name.

Tue Nov 26 16:44:52 2019

purpleiris, who do you think started eBay, someone who was a software engineer, Bezos is that, so are the guys who founded Shopify.

eBay went off course when they hired MBAs who knew nothing about software or running servers, that is what Bezos knows.

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This user has validated their user name. by: RKTOYS

Tue Nov 26 16:47:15 2019

Stop using Google as a good example.  They may have been cool once but have you seen what they've done since installing Sundar Pichai?

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by: purpleiris This user has validated their user name.

Tue Nov 26 17:10:40 2019

@Geetar, a college graduate as I described above, green under the collar, would also make a great puppet. LOL At least they would be well-educated in both business and the industry and would actually have something viable to offer a clueless group of investors.

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by: purpleiris This user has validated their user name.

Tue Nov 26 17:27:03 2019

The first thing they should fix is the search algorithm. Dump the existing one and create a Google-friendly one. Stop basing it on irrelevant factors, particularly ones designed solely to benefit the site.

Make it a fair playground where those who do good business can stand out. I was a newbie once, too, and had to learn a LOT in order to do good business. It's important for newbies to learn as they go; otherwise, you're encouraging them not to learn how to do business properly and it will reflect on the site.

In a fair market, good business is automatically featured. It doesn't have to be forced by factors that only serve to create an unfair market. In a fair market where good business is being done, it creates a level of trust on all sides. That, in turn, will automatically create more good business.

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This user has validated their user name. by: NoMoreEbay

Tue Nov 26 18:06:57 2019

ebay should hire Jason Garrett.  

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by: Geetar This user has validated their user name.

Tue Nov 26 19:04:42 2019

@purpleiris     Unfortunaltely, the current generation thinks too much of themselves when they have an MBA. It's a shame because this guy Skankl probably is smart, smarter than most over at ebay, otherwise he wouldnt have gone as far w/o a degree. It's that arrogance that limits themselves from keeping an open mind and making sound decisions. It's the "I have an MBA from XX, whatever I think must be correct" that gets them into trouble. They need to have a course called Modesty and humility.

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by: mydogti This user has validated their user name.

Tue Nov 26 19:40:14 2019

interface upgrade.

bring all pages of ebay into the 21 century

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This user has validated their user name. by: toolguy

Wed Nov 27 01:47:31 2019

@thievesBay

What does it matter who owns them be it retail investors, institutional or insiders?

Whoever owns the shares are entitled to the money!

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