8-KRegulation FDExhibits & Filings

EBAY INC 8-K Report, Regulation FD Disclosure (Oct 1, 2020)

Filed October 1, 2020For Securities:EBAY

Summary

eBay Inc. (EBAY) has filed an 8-K report on October 1, 2020, to disclose significant strategic divestitures impacting its financial reporting. The company is formally announcing the pending sale of its Classifieds business to Adevinta ASA, a transaction previously agreed upon on July 20, 2020. This divestiture involves transferring subsidiaries and intellectual property related to the Classifieds segment. As a result, eBay will be presenting historical financial results for the Classifieds business as discontinued operations beginning in the third quarter of 2020. Furthermore, the report reiterates the completion of the StubHub business sale on February 13, 2020, to PUG LLC for $4.05 billion in cash. StubHub's historical financial results are already being reported as discontinued operations since the first quarter of 2020. The company is providing unaudited consolidated financial statements, adjusted for these transactions, to aid investors in evaluating eBay's ongoing financial performance and strategic evolution.

Key Highlights

  • 1eBay is divesting its Classifieds business to Adevinta ASA, a transaction agreed upon in July 2020.
  • 2The Classifieds business will be reported as discontinued operations starting in Q3 2020.
  • 3eBay completed the sale of its StubHub business on February 13, 2020, for $4.05 billion.
  • 4StubHub's financial results have been treated as discontinued operations since Q1 2020.
  • 5The company is providing adjusted unaudited consolidated financial statements to reflect these divestitures.
  • 6These adjustments are intended to help investors better assess eBay's core business performance.
  • 7The provided financial information supplements, rather than replaces, previously filed financial statements and MD&A.

Frequently Asked Questions

eBay is reporting two major strategic changes: the pending sale of its Classifieds business to Adevinta ASA and the previously completed sale of its StubHub business. These divestitures represent a significant shift in eBay's business portfolio.

Both the Classifieds business and StubHub will be reported as 'discontinued operations' in eBay's consolidated financial statements. This means their historical financial results prior to the respective sale dates will be separated from the ongoing operations of the company.

eBay is providing unaudited consolidated financial statements adjusted for these significant divestitures. The company believes this will provide investors with a clearer view of eBay's ongoing core business performance and financial health, making it easier to evaluate the company's financial trajectory post-divestitures.

The StubHub business was sold for $4.05 billion in cash. Its financial results are being treated as discontinued operations, meaning they are excluded from the ongoing revenue and profit calculations of eBay's continuing business segments.