eBay Finalizes Multi-Billion Dollar Selling Of StubHub
In a piece of technology news, eBay announced it is officially out of the online ticket resale industry, to the tune of $4 billion.
The e-commerce firm has finalized the USD 4.05 billion transactions of its StubHub affiliate to Swiss online ticket marketplace Viagogo.
Moreover, the firms entered a definitive sale agreement last November 2019. After that, the sale happened within the anticipated timeframe.
Viagogo is an international ticket marketplace for live sport, music, and entertainment events.
On the other side, StubHub is also a ticket marketplace in the U.S.
All together, these marketplaces will offer hundreds of thousands of tickets on a daily basis across more than 70 countries.
Viagogo’s founder and CEO, Eric Baker, also co-founded StubHub.
However, he left before the firm was put up for sale to eBay for $310 million in 2007.
Interim CEO of eBay Inc., Scott Schenkel, stated, “The finalized sale of StubHub to Viagogo is a great result both in terms of the $4.05 billion sale price, and the possible StubHub has with its new owner.”
Schenkel added, “The StubHub transaction reinforces our commitment to developing shareholder value and is consistent with other steps we have taken, such as margin enhancement, share buybacks, and issuing dividends.”
Moreover, “We are operating with discipline and focus, improving financial performance and delivering improved customer experiences.”
To end the statement, “On behalf of the eBay team, we’re excited to see how StubHub evolves in its next phase and benefits fans, partners, and employees,” he said.
Anticipation Of The Net Revenue
The completion of this transaction marks in net earnings of $3.1 billion.
However, with the divestiture of StubHub end, eBay now anticipates net revenue between $2.31 billion and $2.36 billion in the first quarter of 2020. It for the reason that it is reflecting the impact of eradicating StubHub.
The company now anticipates the GAAP earnings per diluted share in the range of $0.54 – $0.57.
On the other side, the non-GAAP earnings per diluted share are in the range of $0.72 – $0.75.
The surge versus preceding guidance signifies the benefit of share buybacks and investment timing.
In particular, the offset is by the impact of eliminating StubHub.
For the full year 2020, eBay now anticipates net revenue between $9.56 billion and $9.76 billion. It is signifying the impression of removing StubHub.
Moreover, the firm expects GAAP earnings per diluted share in the range of $2.20 – $2.30. However, for the non-GAAP earnings per diluted share in the field of $3.00 – $3.10.
Lastly, the boost against previous guidance reflects the benefit of share buybacks, partially offset by the impact of getting rid of StubHub.
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