eBay Inc. (NASDAQ: EBAY) shares made a handy gain on Monday after the firm announced that it would be selling its StubHub segment to viagogo. The sale is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.
Under the terms of the deal, viagogo will acquire StubHub for a purchase price of $4.05 billion in cash. StubHub was originally sold to eBay in 2007 for $310 million.
For some quick background, viagogo is a leading worldwide ticket marketplace for live sport, music and entertainment events, and StubHub is a trusted ticket marketplace in the U.S.
The combined viagogo and StubHub has the potential to sell hundreds of thousands of tickets daily across more than 70 countries, giving fans seamless access to a wider selection of inventory around the world, while sellers, teams and artists will have the ability to more effectively reach a broader global audience.
Eric Baker, viagogo’s founder and CEO who also co-founded StubHub while in business school, but left before the business was sold to eBay, commented:
It has long been my wish to unite the two companies. I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared future. Buyers will have a wider choice of tickets, and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans – more choice and better pricing.
Shares of eBay were last seen up about 1% at $35.55, with a 52-week range of $26.01 to $42.00. The consensus analyst price target is $40.12.