One down, one to go? EBay today announced it would sell StubHub, its ticket-resale unit, for about $4 billion U.S. to Viagogo, a Swiss-based ticket resale company. Viagogo’s founder and CEO, Eric Baker, was also one of StubHub’s original founders.
The sale comes almost a year after activist investment company Elliott Management attacked EBay management and urged it to spin off both StubHub and EBay Classifieds Group, which operates in 13 countries.
The $4.05 billion U.S. StubHub sale to Viagogo is expected to close early next year. Viagogo founder and CEO Eric Baker was one of the founders of StubHub, but left before it was sold to EBay for $310 million U.S. in 2007. He launched Viagogo, which is now active in 70 countries, in 2006. StubHub operates in 44 countries.
EBay said in its Q3 investor call that it would make a decision next year about EBay Classifieds Group. Elliott said the group was valued at about $4 billion U.S. in EBay’s stock capitalization, while it could be valued at $8 billion to $12 billion U.S. if it was spun off and managed differently.