eBay agrees to acquire Tickets Marketplace StubHub for $310 Million

[mandy]

eBay To Acquire Online Tickets Marketplace StubHub

SAN FRANCISCO and SAN JOSE, CA. (Jan. 10, 2007) - eBay Inc. today announced it has agreed to acquire privately held StubHub, a leading online marketplace for the resale of event tickets.

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.

eBay has agreed to purchase StubHub for an estimated aggregate value of approximately $310M, 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. Information relating to the impact of this acquisition on eBay's 2007 financial guidance will be provided on the next quarterly earnings conference call scheduled to take place Jan. 24.

About StubHub

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 FanProtectSM 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.

full press release: http://investor.ebay.com/releasedetail.c...eID=225333

StubHub, which was founded in 2000, had more than $400 million in gross ticket sales last year. It has emerged as the leading independent player in the online resale market for sports tickets. Fans using the service can avoid the perils of scalping unused tickets.

eBay is StubHub's biggest competitor. Other major rivals include InterActiveCorp's Ticketmaster and Craigslist, along with gray-market stadium scalpers...

In 2002, San Jose, Calif.-based eBay had come close to acquiring StubHub of San Francisco for $20 million, but that tentative agreement fell apart at the last minute over price...

full article: http://news.com.com/eBay+to+buy+StubHub+...49314.html

[amy]

In 2002, San Jose, Calif.-based eBay had come close to acquiring StubHub of San Francisco for $20 million, but that tentative agreement fell apart at the last minute over price...

5 years later they agree to pay $310 million for it. :

[mandy]

Commentary on the StubHub deal:

If StubHub is so great, why did it cave in to eBay's charms? It's obvious that eBay bathes in new-economy pheromones, the way it attracts dot-com juggernauts like Skype, PayPal, Shopping.com, and Half.com.

If StubHub wanted to stay single and go public, it would have been one of the more intriguing IPOs of 2007. But it would also have faced several challenges on the horizon. Promoters such as Live Nation (NYSE: LYV) and IAC/InterActiveCorp's (Nasdaq: IACI) Ticketmaster are beginning to muscle in on new ways to make money off live events...

...is eBay making a mistake? I don't think so. If anything, this may be eBay's attempt to follow Amazon.com's (Nasdaq: AMZN) footsteps. Last month, in trying to differentiate its three dozen store categories, Amazon launched a standalone handbag and accessories store, Endless.com...

full article: http://www.msnbc.msn.com/id/16579162/

[BellisimaJ.]

[quote author=amy link=topic=6608.msg40148#msg40148 date=1168541591]

In 2002, San Jose, Calif.-based eBay had come close to acquiring StubHub of San Francisco for $20 million, but that tentative agreement fell apart at the last minute over price...

5 years later they agree to pay $310 million for it. :

[/quote]

Makes perfect sense.