eBay is in advanced talks to sell its classified-ads unit to Norwegian group Adevinta as the online auction pioneer seeks to refocus on its core marketplace business, Reuters reported on Monday, July 20.
eBay intends to keep a minority stake in the business following the close of the deal, a source said.
The deal comes at a time when the coronavirus pandemic has boosted demand for online marketplaces as consumers turned to online shopping due to prolonged lockdowns and social distancing measures in most countries.
Activist investors Elliott Management and Starboard Value had been pushing eBay to sell the unit and also its ticket sales business, since last January, as part of a plan that could double the company’s value.
Ebay’s classified business includes brands such as Gumtree and Kijiji and offers online ads to more than 1,000 cities around the world. The unit posted an operating income of US$83 million and revenue of US$248 million in the first quarter of 2020.
The eBay deal could help Adevinta double in size. Adevinta’s market capitalization at Friday’s closing was 79 billion crowns (US$8.5 billion). Trading in the company’s shares on the Oslo bourse was suspended earlier on Monday in anticipation of an announcement.
Full Content: Reuters
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