What was sold and to whom?

eBay Inc. sold its StubHub business to PUG LLC.

What was the sale price?

The sale price was $4.05 billion in cash, subject to certain closing adjustments.

What are the key adjustments to the purchase price?

The purchase price is subject to adjustments for StubHub's indebtedness, cash, working capital, and transaction expenses at the closing date.

What is the significance of this sale for eBay investors?

The sale allows eBay to divest a non-core asset, potentially unlocking value and enabling a sharper focus on its primary e-commerce marketplace. The substantial cash proceeds can be used for strategic investments, share buybacks, or debt repayment, all of which could be beneficial to shareholders.

EBAY 8-K: Acquisitions & Dispositions

Summary

eBay Inc. announced the completion of the sale of its StubHub business to PUG LLC for a cash purchase price of $4.05 billion. This transaction, finalized on February 13, 2020, marks a significant divestiture for eBay, allowing it to streamline its operations and focus on its core marketplace business. The sale is expected to provide eBay with substantial capital, which can be redeployed for strategic initiatives, debt reduction, or shareholder returns. Investors should note that the purchase price is subject to customary adjustments related to indebtedness, cash, working capital, and transaction expenses of StubHub at the time of closing.

Key Highlights

1Completion of StubHub sale for $4.05 billion in cash.
2Transaction closed on February 13, 2020.
3Purchaser is PUG LLC.
4Purchase price subject to adjustments for working capital, debt, cash, and transaction expenses.
5eBay Inc. filed an 8-K to report the completion of this material divestiture.
6Unaudited pro forma financial information reflecting the transaction is included as an exhibit.

EBAY INC 8-K Report, Acquisition Completed (Feb 13, 2020)

Summary

Key Highlights

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