A major business deal has been confirmed in the sports ticketing industry with news that eBay Inc has agreed to sell StubHub to viagogo for $4.05bn in cash.
The sale is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.
Eric Baker, viagogo’s founder and CEO, also co-founded StubHub while in business school, but left before the business was sold to eBay for $310m in 2007. He said it has been his “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,” Baker added.
“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.”
Reactions to the deal
Scott Schenkel, interim chief executive officer of eBay Inc
“We believe this transaction is a great outcome and maximises long-term value for eBay shareholders. Over the past several months, eBay’s leadership team and board of directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub. We firmly believe in the StubHub business and we are excited about its future growth potential with viagogo as its owner.”
Sukhinder Singh Cassidy, president of StubHub
“Bringing StubHub and viagogo together will allow us to drive further expansion and innovation, and create a more competitive offering for live event fans globally. This provides a great opportunity to expand our business, pursue new partnerships and execute our strategy. We expect a seamless transition for all our employees, partners and customers, and we are excited for what the future holds.”
Further reading
Interview: StubHub president Sukhinder Singh Cassidy talks NFL, London, Brexit and ticket trends