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EBay officially completed the $4.05 billion sale of StubHub ticket platform

via:新浪科技     time:2020/2/14 8:01:07     readed:669

U.S. e-commerce firm eBay has officially quit its online ticket resale business, completing a $4.05 billion deal to sell its subsidiary, StubHub, to Viagogo, the operator of the Swiss online ticketing platform. eBay will use the proceeds from the deal for share buybacks, dividend payments and M & A investments, interim CEO Scott Schenkel said in an interview.

The two companies reached a final agreement in November 2019, and the deal has been completed within the expected time frame.

Viagogo is the global ticket market platform for live sports, music and entertainment, while StubHub is the U.S. ticket market platform that will sell hundreds of thousands of tickets a day in more than 70 countries and regions after the merger. Viagogogo founder and CEO Eric Baker, who is also one of StubHub's co-founders, left after eBay bought the company for $310 million in 2007.

"Completing the deal to sell StubHub to Viagogo is a good result, both in terms of the $4.05 billion sale price and in terms of StubHub's potential after having a new owner." Scott Schenkel, eBay's interim CEO, said. 鈥淭he sale of the StubHub business strengthens our commitment to create value for shareholders, in line with other measures we have taken to increase margins, buy back shares and pay dividends.鈥? we are conducting operations with discipline and focus, improving financial performance and improving the user experience. On behalf of eBay's team, we are thrilled to see StubHub's development in the next phase, benefiting fans, partners and employees.

The completion of the deal generated a net gain of $3.1 billion for eBay. With the sale of StubHub completed, eBay now expects its first-quarter net revenue of $2.31 billion to $2.36 billion in the first quarter of fiscal 2020, reflecting the impact of stripping StubHub. The company now expects diluted earnings of $0.54 to $0.57 per share for the first quarter of the 2020 fiscal year and $0.72 to $0.75 per share for non-U.S. General Accounting Standards, up from previous performance guidelines, reflecting the positive impact of share buybacks and timing, partially offset by the negative impact of the divestment of the StubHub business.

For the full year 2020, eBay currently expects net revenue of $9.56 billion to $9.76 billion, reflecting the impact of the spin off of StubHub. The company currently expects diluted earnings per share for the full year of 2020 to reach $2.20 to $2.30, and diluted earnings per share not in accordance with U.S. GAAP will reach $3.00 to $3.10, which is up compared with the previous performance guidance, reflecting the positive impact of share buyback, but partially offset by the negative impact of the divestiture of StubHub business.

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