eBay is said to be on the verge of concluding an agreement to sell its classifieds business to Adevinta, a Norwegian company that manages online markets in Europe and Latin America. According to a Wall Street Journal report, if negotiations are successful, a cash and equity agreement could be announced as early as Monday. The transaction is expected to value eBay's classified activities at approximately $ 8 billion.
The Wall Street Journal announced for the first time in February that eBay was planning to sell its classified ads business, with potential buyers named at the time, including private equity firms TPG and Blackstone Group, Naspers, and l German publisher Axel Springer SE.
Most recently, Prosus NV, an Amsterdam-based investment company that is controlled by Naspers, has emerged as a competitor, but Bloomberg reported this weekend that negotiations had collided because eBay wanted to maintain a stake in the small ads after selling it.
Activist shareholders Elliot Management and Starboard Value LP pushed eBay sell non-core business units to focus on its market, which resulted in the sale of StubHub to viagogo for more than $ 4 billion last year and the appointment of a new CEO.
Ebay's classifieds division operates primarily outside of the United States, including Canada, Europe, Africa, Australia and Mexico. If Adevinta eventually acquires it, it can expand its international portfolio of peer-to-peer e-commerce platforms.
A representative from Adevinta told TipsClear that the company had no comments on the reported negotiations. TipsClear also contacted eBay.
Ebay said in its latest quarterly earnings report, released in April,[ing] potential value creation alternatives for its classified ads business, is in active discussions with several parties and plans to update by the middle of the year. "
In the first quarter of this year, eBay's main market activity generated revenues of $ 2.1 billion, down, while its classified ads activity recorded revenues of $ 248 million. In 2019, classifieds generated $ 1.1 billion in revenue, compared to $ 7.6 billion for eBay Marketplace, which is facing competition from larger online rivals like Amazon.
