 |
|
EBay Buys StubHub for $310 MillionPOSTED January 11, 2007 SAN JOSE -- EBay said it has agreed to acquire privately held StubHub, a leading online marketplace for the resale of event tickets, for $310 million. StubHub is the fan's ticket marketplace, enabling customers to buy and sell tickets at fair market value to a vast selection of sporting, concert, theater and other live entertainment events, even those that are "sold out." The company's unique open marketplace, dedicated solely to tickets, provides all fans the choice to buy or sell their tickets in a safe, convenient, and highly reliable environment. All transactions are processed and delivered via StubHub's patent-pending FanNetworkSM ticket delivery service, supported by seven-day toll free customer service, and backed by the industry-first FanProtectS Guarantee. Company partners include sports teams in the NFL, NBA, NHL, leading NCAA athletic programs and media companies including AOL. StubHub is headquartered in San Francisco. The acquisition will enable eBay to expand its presence and offering in the online tickets segment, while allowing StubHub to continue to scale its business with the e-commerce expertise and resources of eBay. "StubHub has been extremely successful in the online tickets segment, and it's a perfect complement to eBay's tickets business," said Bill Cobb, president, eBay North America Marketplaces. "Together we can strengthen both businesses and provide fans with more choice and better service." "StubHub's business model is an excellent fit with eBay, a company we've admired for a long time," said Jeff Fluhr, founder and CEO of StubHub. "StubHub exists to serve passionate fans - and we feel great knowing our customers will benefit from the power of eBay and its community of users." Launched in 2000 and based in San Francisco, StubHub is the fan's marketplace where transparency and fairness benefit buyers and sellers alike. StubHub charges sellers a 15% commission to sell tickets and buyers a 10% fee when they purchase tickets along with a shipping and handling fee. EBay has agreed to purchase StubHub for an estimated value of approximately $310 million, which will include the company's net cash as of the closing. The final amount will be determined at closing based on a formula and be payable in cash. This acquisition -- which is subject to regulatory approval and approval of StubHub's stockholders, among other conditions -- is expected to close in the first quarter of 2007. EBay has long been interested in StubHub. It was rumored that eBay considered purchasing the startup several years ago for just $20 million but passed. © Copyright SVDaily.com |
|