|Mon Nov 25 2019 16:44:20|
What Should eBay Do with Billions from StubHub Sale?
By: Ina Steiner
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.