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eBay launches ‘strategic review’ that includes StubHub


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Ticketmaster recently shut down its secondary-ticketing websites GetMeIn and Seatwave in Europe last year, shifting the option for fans to resell tickets to its own platform instead. Now could eBay be getting rid of its secondary-ticketing division StubHub? It’s possible, albeit with a sale an option rather than a shutdown.

eBay has announced “a strategic review” of its business portfolio“including StubHub and eBay Classifieds Group”. The company elaborated: “There can be no assurance that the strategic review being undertaken will result in a sale, spin-off or other business combination involving eBay’s assets.”

There’s some background to this: eBay has been under pressure from investment group Elliott International, which owns 4% of its stock. “StubHub is non-core to the eBay Marketplace but would command significant value as a market-leading, scale business,” wrote Elliot in an open letter to eBay’s management earlier this year. “We believe that StubHub represents $3.5 – $4.5 billion of value, relative to a value of just ~$2.2 billion if capitalised at eBay’s consolidated valuation multiple today.” In other words, the pressure wasn’t over any moral sense that eBay should get out of secondary ticketing, but more about making a windfall through spinning StubHub off, while also focusing back on the core eBay business.

Stuart Dredge

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