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. 

Comments (92) | Leave Comment | Permalink
Readers Comments

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This user has validated their user name. by: toolguy

Wed Nov 27 01:52:48 2019

@pace306

What does Etsy Own? eCrater? Bonanza? Alibaba? Mercari? Shopify?

And if I took the time I'm sure I could find more, those are just off the top of my head.

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This user has validated their user name. by: toolguy

Wed Nov 27 01:57:41 2019

@pace306

eBay isn't selling Stubhub until after the 1st of the year.

So 4th Quarter numbers will include Stubhub earnings.

Then in the 1st Quarter of 2020 they'll have to claim the $4 billion which in turn will make their numbers look good for the year.

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This user has validated their user name. by: toolguy

Wed Nov 27 02:11:12 2019

@thievesBay

I'll give you a good stock with a low P/E that will have great success over the next 20 years.

GM

General Motors will sell more vehicles in the next 20 years then it has in the last 50 years combined!

GM will be the #1 automaker in china without a doubt. . . .

Over 1 billion people in china don't own a car!

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This user has validated their user name. by: toolguy

Wed Nov 27 02:12:59 2019

@RKTOYS

Google search results have been going down hill for months

The new pages look CHEAP

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by: maxmad This user has validated their user name.

Wed Nov 27 07:12:14 2019

Ebay should use some of the money to buy a few Cat D11 Bulldozers,, and push the whole rotten thing into a deep hole, and with the leftover money, buy Amazon stock.

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by: pace306 This user has validated their user name.

Wed Nov 27 08:04:57 2019

So 4th Quarter numbers will include Stubhub earnings.

Then in the 1st Quarter of 2020 they'll have to claim the $4 billion which in turn will make their numbers look good for the year.


Thank you for making my point - ebays marketplaces make no money and numbers they post are contrived.

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by: maxmad This user has validated their user name.

Wed Nov 27 09:34:35 2019

@toolguy

For once I fully agree with you, about GM , sad but very true.

The absolute fact is GM now sells more vehicles in China then anywhere else, (even more then US) soon your American GM will be imported and made 99% in China,

This month we just finished production machines for Auto Parts manufacturers in China, this is our third plant this year, they are absolutely booming,

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by: RL15 This user has validated their user name.

Wed Nov 27 12:15:32 2019


fools that have no money and can not ship orders when they are forced into mangled payments have no credibility at all when it comes to finances

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by: pace306 This user has validated their user name.

Wed Nov 27 13:31:09 2019

Tool

As for your question on eBays low p/e ratio ...... if you would just look into it .....

"So is a stock with a lower P/E ratio always a better investment than a stock with a higher one? The short answer? No. The long answer? It depends."

(eBays stock falls into this category) "what if a stock earning $1 per share was trading at $40 per share? Then we’d have a P/E ratio of 40 instead of 20, which means the investor would be paying $40 to claim a mere $1 of earnings. This seems like a bad deal"

SO - ebay who is "#2" in ecommerce, with a stock at $40 that pays $1 or so ..... is a bad choice.

Now that we clarified stocks - we can move on (again) to the question at hand aka "what to do with eBays ill gotten gains"?

Either invest it in the company (they wont), or refund all the sellers you stole from (they wont).

Well, there you have it .... maybe it will offset the loss they took on Skype ... who knows?

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This user has validated their user name. by: toolguy

Wed Nov 27 14:01:28 2019

@pace306

eBay paid $310 million for Stubhub and are selling it for $4+ billion

How are they "ill gotten" gains?

When you sell something is your profit an "ill gotten" gain?

"So is a stock with a lower P/E ratio always a better investment than a stock with a higher one? The short answer? No. The long answer? It depends."

I fully agree with the above.

I've made and lost money on both low & high P/E stocks. . . .

@RL15, you are right never take financial advise from someone who isn't a millionaire. . . . .

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This user has validated their user name. by: NoMoreEbay

Wed Nov 27 16:21:40 2019

ebay's current P/E ratio of 15.96 tells me that investors have little faith in ebay's future earnings. Which is understandable considering ebay's negative growth in 2019.

Don't expect the stock price to go much higher. A joke really considering we've been in a consumer bull market for 11 years and just about every other company in this arena has seen their stock price soar.

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by: pace306 This user has validated their user name.

Wed Nov 27 16:30:33 2019

TOOL :)

eBay had NOTHING to do with Stubhubs success.

Unless you have insider secrets that no one knows about - ie that SHs association and being part of eBays corporate structure "did anything for them" .... whats the point?

eBay stole from sellers left & right. If first covered its losses on the marketplace by hiding behind Paypal. That stopped working after it was realized that (like Paypal or not) that eby was an albatross around its neck.

After Paypal left - eBay hid its %2-3 "gain" behind SH's skirt. Now that SH will be sold off - and Amazon & Walmart - your 2 biggest competitors in the field are at least growing 5-10X you are (in reported sales gains) ... what will they do?

They will lie, claim some kind of transition period after DW left, blame a bad economy, blame Trump, blame Obama, blame Putin - anyone and anything - because stealing from your sellers only goes so far.

Its like drugs. First the small stuff, then your appetite gets bigger - and you need to find ways to steal to get your next high.

eBay gave up on fixing its marketplace and got hooked on the cheap highs of stealing from sellers. But as the golden parachutes increased, as they built Walkers West - they needed even BIGGER amounts of stolen cash. They then (now) are trying to steal tax monies from other CA counties to feed their addiction(s).

So yeh - refund all the people you stole from and apologize and rebuild.

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This user has validated their user name. by: toolguy

Wed Nov 27 17:17:41 2019

@pace306

eBay's a failure, they've only been in business for 25 years and have made a profit every year except 2. . .

They've provided a living for 1000's of people if not millions!

They are far from being perfect but gave the average Joe Lunch Bucket a chance at being their own boss.

Overall I consider eBay a HUGE success. . . .


PS: Amazon is hiding behind it's cloud services! I have to wonder if they make as much money as eBay does when it comes to online sales??????

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by: pace306 This user has validated their user name.

Wed Nov 27 19:19:28 2019

"eBay's a failure, they've only been in business for 25 years and have made a profit every year except 2"

Enron made a profit too
So did Packard
So did Studebaker
So did Pan Am
So did Penn Central
As did Blockbuster
As did Lehman Brothers
Tower Records and many more ...

Shall I go on? (except here eBay hasnt really made any money). They stole millions from sellers and when it didnt work they hid behind the skirts of their associated companies - which they cant do any more.

If you are a user of eBay then you understand the issues that PLAGUE the system. If you arent or you are just blind (you only love them when they give you your 2-3 sales a week or whatever)(when they dont you hate them) .. and thats fine - but its not being honest.

"They are far from being perfect but gave the average Joe Lunch Bucket a chance at being their own boss."

In what way are you your own boss? PLEASE enlighten me (us).

Can you accept payments ANY way you want? No
Can you list your item ANY way you want? No
Can you ship when you want? No
Are your listings visible (since you pay for them) 24/7/365? No
Does eBay decide returns for you? Yes - so REALLY you arent in charge of very much are you (as a seller)?

I can go on - but I *think* you understand (I hope) that the "lets you be your own boss" - is %100 fake news.

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This user has validated their user name. by: The End

Wed Nov 27 20:00:36 2019

The bigger they are the harder they fall.

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This user has validated their user name. by: toolguy

Wed Nov 27 22:51:48 2019

@pace306

1st off 99.9% of eBay businesses can't survive on 2-3 sales a week.

In the 19+ years I've been a full time seller at no time did my sales dip to 2-3 a week. Maybe You have experienced that , I have not.

"In what way are you your own boss? PLEASE enlighten me (us)."

I sell US made Aircraft Tools not chinese headphones! I sell them at a fixed price that I have decided on not eBay, I could also sell them at auction. MY CHOICE

"Can you ship when you want? No"

I can ship anytime I want to and in fact I decided to ship the last pair of snowshoes I sold a day late. . . .eBay has NO control when I ship my items.

"Are your listings visible (since you pay for them) 24/7/365? No"

Are they all shown all the time? YOU BETCHA they are!

We've been thru this before, I don't sell common stuff like you do.

I've tested this hundreds of times over the years and the only items that have ever been hidden are what eBay calls "assault weapons parts".

But as far as my Aircraft Tools go they're always there on eBay to be seen and in fact most are on Google too.

"Does eBay decide returns for you?"

eBay doesn't have to decide for me, I accept ALL returns.


Pace306, someday you might realize that I have sold WAY more on eBay then you have both in the number of items and GMV.

And I'm a small fish, and you're a smaller fish. We just happen to both be swimming in the eBay ocean.

PS: Does venting on this forum help you keep your eBay sanity? lol

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This user has validated their user name. by: thehosst

Thu Nov 28 05:02:47 2019

This so called "Activist investor Elliott Management" is nothing but a wave of bad news for anything that touches, yes, some (very few) people make money, but at the expense of so many jobs, terrible!

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by: hawk This user has validated their user name.

Thu Nov 28 06:24:35 2019

ebay is going to do what it wants to do with it. anything that anyone says is not going to matter. ebay was once a great venue that turned corrupt , and has proven over and over that they don't care. get used to it , report them , and move on.

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by: eastwestphoto This user has validated their user name.

Thu Nov 28 10:49:49 2019

History tells us, the money will go to the shareholders.  

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by: mazelgirl This user has validated their user name.

Thu Nov 28 11:13:24 2019

16 PE isn't that low--under 10 is a spectacular P/E

I'd like them to put the money into platform upgrades

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