eBay, the ecommerce giant has agreed to sell StubHub to Viagogo for $4 billion. The announcement was made the e-commerce giant on Monday. The complete process is expected to be completed by the first quarter of next year subject to approvals from regulatory bodies and other conditions being met. On the back of this news, eBay shares rose by 1%.
Erick Baker the CEO of Viagogo co-founded StubHub when he was in business school. He had left the ticketing company after it was sold to eBay for $310 million in 2007 and due to differences between various opinions with his partner.
He was still a shareholder of the company but couldn’t express his opinions while the move was being done to sell the company to eBay. Baker said that he was also wishing that this move materializes for quite some time now.
A spokesperson on behalf of StubHub said that Eric has seen the opportunity if the two business houses combine and work together. He is very passionate about it the business that he organized 19 years ago and so he wants to buy it back. He is totally committed to making the move which is great for the future of the company.
When StubHub and Viagogo combine the tickets would be sold in more than 70 countries. This would give the customers more options and inventory to choose from while the companies together will be able to access a larger customer segment.
Baker although declined to comment anything on how the payment of $4 billion will be done. Viagogo although had chosen J.P. Morgan as its debt financer. eBay will invest the money from the deal into stock buybacks and dividends said interim CEO Scott Schenkel.
The companies are likely to run independently for some time while the officials from both ends to look to merge the business of the two companies.
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