Reportedly, eBay is getting to close a deal with Adevinta. EBay’s classified advertisement business is near to combine with Adevinta for over $8 billion. Adevinta is a Norwegian company running several marketplaces online in Latin America and Europe.
It’s possible that as early as Monday, the deal could be announced if the negotiation goes well. The report is according to the Wall Street Journal.
The news about eBay’s selling of its classified ads is not new this year. In February, the news about Ebay’s classified advertisement business being sold to various buyers was out.
Some of the interested buyers were the TPG, Blackstone Group, and Naspers private investment firms. The Axel Springer SE, a publisher in German, has shown interest as well. However, there is no successful deal between these companies, as reported.
Another interested buyer is an equity firm based in Amsterdam, the Prosus NV. The eBay wants to have a stake for selling to get the deal done with Prosus, which did not happen later on.
The decision of eBay to give up its classified business was triggered by the activists. Elliott Management Corp. and Starboard Value LP have been pressuring eBay to slim down its business. They have also continued urging the company to sell its classified advertisement business and ticketing.
Significantly, other larger company like Amazon is competing quite well. It can be seen in the revenue generated by eBay earlier this year and last year. In 2019, the revenue they accumulated in their classified business was $1.1 billion, while compared to this year’s indexed income, which falls to $248 million.
Last year, eBay also announced that it would be selling its StubHub ticketing business. In an amount of $4 billion, the company has sold its StubHub to Viagogo, a resale and ticket exchange company based in London.
The selling of eBay’s classified advertisement and ticketing business would leave it to focus on the operation of its marketplace.