The selling of eBay continues
eBay continuously selling enormous chunks of their own business for billions of dollars. They have announced on Tuesday that they are selling its classified advertising products or business for $9.2 billion in stock and cash to Adevinta, a Norwegian retailer based.
The platform has said to be struggling with its operations over the years, which leads to the PayPal enterprise business sale in 2015. According to the activist investors, Elliott Management and Starboard Value have shaken the sale for both StubHub and the classifieds business, which has now both been sold. eBay agreed to sell StubHub to Viagogo for $4.05 billion in cash last 2019.
The only thing left on eBay now is its core online marketplace, which has diminished in influence in e-commerce. According to the researcher eMarketer, Walmart overtook eBay as the second-biggest online seller in the US following years of bland growth of eBay.
After selling their company piece by piece, it’s allegedly reported that eBay will be small enough and focused enough to make for a suitable acquisition target. According to the Adevinta deal, eBay will receive $2.5 billion in cash and own 44% of the company, though only have 33% of voting rights. They say that the sale is expected to close by the first quarter of next year.
The Adevinta is a Norway-based classified advertising publisher which is majority-owned by Norwegian publisher Schibsted. They value the deal at $9.2 billion, which comprises eBay getting $2.5 billion in cash and 540 million Adevinta shares. The deal also makes eBay a 44% owner of Adevinta, with a 33.3% voting stake. Adevinta’s interest in eBay was reported earlier in the week. However, the deal is coming at a much lower valuation of $8 billion.