“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,” said Schenkel.
StubHub, a digital platform that sells tickets for various programs including sporting events and music concerts, joined the eBay-fold more than a decade ago pursuant to a $310-million buyout. Viagogo resells tickets, mainly for sporting events including rugby and European football.
The sale followed a series of negotiations held after eBay executives came under pressure from activist investors who suggested that divesting StubHub would help in streamlining the core business effectively. The company recently embarked on a restructuring program, aimed at organizing the various units.
Related: eBay’s Q3 results beat estimates
eBay shares had a positive start to the year, and gained 20% so far, though they lost some momentum in the past few weeks. The stock traded up 2% during the early hours of Monday after opening the session higher.