Switzerland-based secondary ticketing company Viagogo has acquired eBay’s ticketing division StubHub for $4.05 billion 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 (pictured), 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.
Baker went on to create Viagogo, which was originally based in London. Today’s deal will unite the two businesses which share the same fundamental principle of providing a secure platform for people to buy and sell tickets to live events.
“We firmly believe in the StubHub business and we are excited about its future growth potential with viagogo as its owner.”
Scott Schenkel, eBay
“We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders,” said Scott Schenkel, interim Chief Executive Officer of eBay Inc.
“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.”
“It has long been my 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.”
Eric Baker, viagogo
“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,” said Eric Baker, CEO of Viagogo.
“It has long been my 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.”
Goldman Sachs & Co. LLC is acting as financial advisor to eBay.
Wachtell, Lipton, Rosen & Katz and Quinn Emanuel are acting as legal advisors to eBay.
J.P. Morgan is acting as sole financial advisor and sole underwriter of the committed debt and preferred equity financings for Viagogo.
Skadden, Arps, Slate, Meagher & Flom LLP and Kirkland & Ellis LLP are acting as legal advisors for Viagogo.
The sale of eBay’s secondary ticketing platform follows a strategic review of the division announced in March.
The review was launched after an open letter was issued in January by one of eBay’s largest investors, Elliott Management Corporation, which called for a “comprehensive portfolio review” and suggested that the divestitures of the subsidiaries will create more value for eBay shareholders.Music Business Worldwide
