EBay Inc will sell ticketing unit StubHub to ticket reseller Viagogo Ltd for US$4.05 billion (or almost CAD$5.4 billion) in cash, the companies said on Monday, nearly a year after the e-commerce major came under pressure from activist investors to hive off some of its businesses.
In January, activist investors Elliott Management Corp and Starboard Value had urged eBay to sell its ticket sales business and eBay Classifieds Group as part of a plan that could double the company’s value.
Elliott valued StubHub between US$3.5 billion and US$4.5 billion, while eBay Classifieds between US$8 billion and US$12 billion.
Viagogo Chief Executive Officer Eric Baker had co-founded StubHub but left before the business was sold to eBay for US$310 million in 2007.
Following the activist investors’ request, eBay made changes to its board of directors in March. It announced a review of its StubHub and eBay Classifieds businesses as part of an agreement with activist investors to avert a proxy contest.
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