Message #99 From:
NewsBot Date: January 10, 2007 03:48:00 PM
EBAY News eBay to Acquire Online Tickets Marketplace StubHub
SAN FRANCISCO & SAN JOSE, Calif.--(BUSINESS WIRE)--eBay Inc. (NASDAQ:EBAY) today announced it has agreed to acquire
privately held StubHub, a leading online marketplace for the resale of
event tickets.
The acquisition will enable eBay to expand its presence and offering in
the online tickets segment, while allowing StubHub to continue to scale
its business with the e-commerce expertise and resources of eBay.
"StubHub has been extremely successful in the online tickets segment,
and it’s a perfect complement to eBay’s
tickets business," said Bill Cobb, president, eBay North America
Marketplaces. "Together we can strengthen both businesses and provide
fans with more choice and better service."
"StubHub’s business model is an excellent
fit with eBay, a company we’ve admired for a
long time," said Jeff Fluhr, founder and CEO of StubHub. "StubHub exists
to serve passionate fans – and we feel great
knowing our customers will benefit from the power of eBay and its
community of users."
Launched in 2000 and based in San Francisco, StubHub is the fan’s
marketplace where transparency and fairness benefit buyers and sellers
alike.
eBay has agreed to purchase StubHub for an estimated aggregate value of
approximately $310M, which will include the company's net cash as of the
closing. The final amount will be determined at closing based on a
formula and be payable in cash.
This acquisition – which is subject to
regulatory approval and approval of StubHub’s
stockholders, among other conditions – is
expected to close in the first quarter of 2007. Information relating to
the impact of this acquisition on eBay's 2007 financial guidance will be
provided on the next quarterly earnings conference call scheduled to
take place Jan. 24.
About StubHub
StubHub is the fan's ticket marketplace, enabling customers to buy and
sell tickets at fair market value to a vast selection of sporting,
concert, theater and other live entertainment events, even those that
are "sold out." The company's unique open marketplace, dedicated solely
to tickets, provides all fans the choice to buy or sell their tickets in
a safe, convenient, and highly reliable environment. All transactions
are processed and delivered via StubHub’s
patent-pending FanNetworkSM ticket delivery
service, supported by seven-day toll free customer service, and backed
by the industry-first FanProtectSM Guarantee.
Company partners include sports teams in the NFL, NBA, NHL, leading NCAA
athletic programs and media companies including AOL. StubHub is
headquartered in San Francisco.
About eBay Inc.
Founded in 1995, eBay pioneers communities built on commerce, sustained
by trust and inspired by opportunity. eBay enables e-commerce on a
local, national and international basis with an array of websites –
including the eBay Marketplaces, PayPal, Skype, Kijiji, Rent.com and
Shopping.com – that bring together millions
of buyers and sellers every day.
Forward-Looking Statements
This announcement contains forward-looking statements that involve risks
and uncertainties, and actual results could differ materially from those
discussed. Factors that could cause or contribute to such differences
include, but are not limited to, the receipt and timing of regulatory
approval for the transaction, the possibility that the transaction may
not close, the reaction of the users of StubHub’s
services, the future growth of StubHub’s
services, the reaction of competitors to the transaction, and the
possibility that integration following the transaction may be more
difficult than expected. More information about potential factors which
could affect eBay’s business and financial
results is included in eBay’s Annual Report
on Form 10-K for the year ended December 31, 2005 and eBay’s
Quarterly Reports on Form 10-Q. All forward-looking statements are based
on information available to eBay on the date hereof, and eBay assumes no
obligation to update such statements.
