What just happened? Two of the industry's premiere online ticket exchange services are uniting as Viagogo has agreed to purchase StubHub from eBay for more than $4 billion in cash. Together, the two companies plan to sell hundreds of thousands of tickets daily across more than 70 countries.
eBay on Monday announced intentions to sell online ticket exchange subsidiary StubHub for $4.05 billion in cash.
The buyer, Viagogo, is an online marketplace for ticket resale that was founded in 2006 in London. It's similar to StubHub but operates on a global scale whereas StubHub is currently limited to just a handful of markets including the US, Canada, Germany and the United Kingdom.
Scott Schenkel, interim chief executive officer of eBay Inc., said that over the past several months, they have conducted a strategic review of strategies and their portfolio, concluding that the sale was the best path forward for both eBay and StubHub.
Viagogo CEO Eric Baker is no stranger to StubHub. In 2000 while still in business school, he co-founded StubHub with Jeff Fluhr. Both Baker and Fluhr left the company in 2004, just a few years before eBay scooped it up for $310 million.
Baker said it has long been his wish to unite the two companies, adding that he is proud of how StubHub has grown over the years and is excited about the possibilities for their shared future. "Bringing these two companies together creates a win-win for fans - more choice and better pricing," Baker said.
The sale is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.
Masthead credit: Tickets by Gary Glaser