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: pace306 This user has validated their user name.

Mon Nov 25 17:26:15 2019

Golden Parachutes all around - for the morons who created the worst ecommerce company on the planet!

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by: FeelingFroggy This user has validated their user name.

Mon Nov 25 17:35:05 2019

They should consider giving the idiots in San Jose a raise as they are doing such a stellar job by stealing from the sellers.

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

Mon Nov 25 17:46:25 2019

They need to hire a CEO who has a software engineering background as Microsoft and Google have done and give him the cash to hire a new IT team.

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This user has validated their user name. by: toolguy

Mon Nov 25 17:53:43 2019

The right thing to do is give to the shareholders!

Anyone think eBay will do the right thing?

I DON'T

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This user has validated their user name. by: unsuckEBAY
Web Site

Mon Nov 25 17:56:53 2019

- Expand & upgrade Walker's West?
- New GulfStream?
- Larger CEO security detail?
- Resume lazy and undisciplined marketing spend with sitewide coupons (''buyers love 'em!'')

No. First and foremost eBay should be 'reinvesting' a large portion of that $4bn into fixing eBay's rampant site issues, payments problems, and never-ending stream of ''glitches'' (something Wenig told sellers would happen at 2018's eBay open).

Sadly, based on results it seems that no-one currently in leadership at eBay has any idea how to go about doing this.

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This user has validated their user name. by: RKTOYS

Mon Nov 25 18:36:51 2019

Choke on them.

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This user has validated their user name. by: NoMoreEbay

Mon Nov 25 18:42:22 2019

I know what they won't do. Anything to benefit sellers, buyers or anyone not directly associated with their executive infrastructure.

What they should to do is parlay their new found value into a bid to be sold to the highest bidder. Alibaba, Yahoo Japan Auctions or maybe Qoo10 out of Singapore.  

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by: pace306 This user has validated their user name.

Mon Nov 25 19:20:01 2019

Tool

The shareholders????

All the stolen funds they collect NOW GOES THERE!

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

Mon Nov 25 19:22:51 2019

Wow, a novel concept, invest the money in the business instead of buying back shares which is what companies in decline and going out of business do.

If they invested the cash in the business they would not have to defraud sellers with their unending criminal schemes like the automated Good Til Canceled fee generation script.

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by: thievesBay This user has validated their user name.

Mon Nov 25 19:35:34 2019

Most of it will be wasted on buybacks trying to prop up the stock price while executives are selling behind it. They won't spend a dime on fixing anything. Without StubHub, eBay is now left alone to continue its deterioration. So, more of exactly the same!

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This user has validated their user name. by: iheartjacksparrow

Mon Nov 25 19:51:17 2019

They need to take that money and fix eBay so it is once again a viable marketplace. Hire programmers who know what they are doing to stop the constant glitches and other site issues. They could also use the money for advertising, and hire an agency that can actually craft a campaign that sticks in the minds of consumers. Get the name "eBay" back in the news so people will want to shop there. Hire the agency that does the GEICO commercials and have a talking spokes-animal that will entertain while enumerating why eBay is the best place to buy anything and everything you need. Set up a seller protection section that has the ability to take action against liar buyers. And hire and train U.S. based CSRs who are able to listen and understand the problems of its sellers, and do something more than read from a script.

But, hey, who are we kidding? We all know they'll just throw the money at the executives, as well as build something stupid like a water park for the employees.  

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This user has validated their user name. by: toolguy

Mon Nov 25 19:58:08 2019

@iheartjacksparrow

I thought you didn't sell on eBay anymore?

What "gliches" are you talking about?

Please tell me you aren't going by "hearsay" of others!

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This user has validated their user name. by: Ric

Mon Nov 25 20:12:00 2019

"What Should eBay Do with Billions from StubHub Sale?"

Two words..... Fix EVERYTHING!!!

As ramshackle as eBay has become under the previous two failed CEO's, $4 billion might be sufficient, then again, given eBay's propensity to hire clueless CEO's, $4 billion might be a drop in the bucket.

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This user has validated their user name. by: iheartjacksparrow

Mon Nov 25 22:35:18 2019

@toolguy - Hearsay? Give me a freaking break. When a plethora of people report a problem, that's not hearsay. That's a problem! I suppose when hundreds (or was it thousands?) of people have their photos sent to The Twilight Zone, that was hearsay? And wasn't it Devin who apologized for the mess the site was in and stated it wasn't acceptable? I suppose that was "hearsay" as well.  

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This user has validated their user name. by: toolguy

Tue Nov 26 02:23:32 2019

@iheartjacksparrow

So you didn't experience any of these "glitches" or "site issues" yourself?

So you really have no idea how often these issues happen yet you want eBay to spend money on fixing something you have no knowledge of first hand. . .

That would be "reckless' on the board of directors part to do such a thing.

The money belongs to the share holders! The one's who actually OWN eBay. . . .

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

Tue Nov 26 06:00:27 2019

Homes for Veterans.

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by: Whatever This user has validated their user name.

Tue Nov 26 06:24:57 2019

iheartjacksparrow - pay him no mind - depending on which day of the week it is he is either a cheerleader for ebay or agreeing with everyone's else's opinion

we are all painfully aware of the endless amount of glitches and barriers to selling on ebay

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by: I Must be Crazy This user has validated their user name.

Tue Nov 26 10:52:25 2019

I think it is safe to say that any meaningful investment in the core business would be throwing good money after bad. At least the board of directors must think so. Seems to me it is already decided where that money will go; a continuation of the same strategy to bolster stock prices while allowing the platform to break down. A focus on "shareholder value".

They are just too far behind. When your business lags by the significant numbers that eBay has managed while eccommerce has grown by over 20 percent every year, you don't throw money at it and "catch up". I don't care how much marketing they do. The results aren't worth it. Most people have heard of eBay, and have opinions good or bad. Frankly Amazon does it better, they win. Walmart does it better, they win. Many smaller sites have their niche, they win. Ebay is somewhere in between all of that, they are lost. No amount of money can change that.

Ebay is at the cash cow phase of it's lifecycle. That is not a phase of growth or major investment. It is merely extract cash and use that cash for more meaningful goals. The site doesn't work for your business? Okay fine go elsewhere; bye bye. That was the attitude of John Donohoe. There will always be more sellers. They don't care who does the selling, long as the sale happens on eBay.

To that end eBay has done very well.

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by: pace306 This user has validated their user name.

Tue Nov 26 11:01:26 2019

The OBVIOUS answer is to make whole, ALL the sellers they let "their buyers" steal from.

If you are a 10 yr old seller with a 98% feedback rating or more - you get made whole.

THAT kinda thing.

It will do MUCH more then giving it to Elliot, random share holders or golden parachutes for the know nothings in CA. Besides - those guys steal enough anyways.

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This user has validated their user name. by: toolguy

Tue Nov 26 11:09:36 2019

eBay is a solid company!

They make money and lots of it.

Show me another company in the same space as eBay that has a P/E as small as eBay's or smaller.

I bet you can't find one!

Not even Walmart has a P/E as low as eBay's

The TRUTH is that Wall Street hates eBay with a passion. . .

For those that don't know what a P/E is, it's Price (market cap) to Profit

The lower the number the better!

eBay's P/E is 16

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