Ebay has announced that it has agreed to sell StubHub to a Swiss ticketing company called Viagogo for $4.05 billion, all of which will be in cash.
The company hopes to complete the sale by end of its first quarter. Though the deal is still subject to regulatory approval.
In reaction to the news, shares of Ebay rose a modest 1%.
StubHub and Viagogo have interesting ties. Eric Baker, who is currently the CEO of Viagogo, was actually one of the co-founders of StubHub, doing so while attending business school. He left StubHub prior to its sale to Ebay in 2007 for $310 million. This was because of “differences” with his partner.
At the time of the sale, Baker was still a shareholder, though he was not involved in the sale. He further says that he would have never sold the company to Ebay if it had been his decision.
“If it was up to me I wouldn’t have to buy it back because I never would have sold it,” he told CNBC, “but everything worked out in the end.”
He also says that, for a long time, he had been looking for a way to bring the two companies together. “The opportunity to combine the two and have true global coverage just made too much sense.”
All together, StubHub and Viagogo will sell tickets in over 70 countries.
Though it is believed that the two companies will continue to operate at least initially as separate entities, as the two are still trying to determine the best way to integrate.
The companies also indicated that, at the moment, they have no plans to change the leadership in either company.
According to the announcement, the deal will give fans “seamless access to a wider selection of inventory around the world, while sellers, teams and artists will have the ability to more effectively reach a broader global audience.”