Ebay to sell classified ads unit to Adevinta for nearly $9bn
Norwegian group Adevinta has won the auction to buy US e-commerce firm Ebay’s classified-ads unit for nearly $9bn, a source familiar with the matter told Reuters today.
Ebay intends to keep a minority stake in the business following the close of the deal, the source said.
Activist investors Elliott Management and Starboard Value had been pushing Ebay to sell the unit.
The deal comes at a time when the coronavirus pandemic has boosted demand for online market places as consumers turned to online shopping due to prolonged lockdowns and social distancing measures in most countries.
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 $83m and revenue of $248m in the first quarter of 2020.
Last week Reuters reported that the US e-commerce giant had offers submitted by online retailer Prosus and Adevinta.
Other prospective buyers named in February when the deal first came to light included including private equity firms TPG and Blackstone Group and German publisher Axel Springer.
The campaign from Elliott and Starboard has so far resulted in the sale of Stubhub to Viagogo for more than $4bn and the appointment of a new chief executive officer.
Ebay did not immediately respond to a Reuters request for comment, while a spokesman for Adevinta declined to comment.