Ebay Sells Classifieds Unit For $9.2 Billion

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Jul 22, 2020 at 7:30 AM EDT

eBay is selling its classified ads business to Norwegian company Adevinta for $9.2 billion in cash and stock.

eBay (EBAY) is selling its classified ads business to Norwegian company Adevinta for $9.2 billion in cash and stock. The terms of the deal will mean eBay will receive $2.5 billion in cash while also becoming the largest shareholder in Adevinta with a 44% equity stake in the company, as well as a third of the voting rights.

Ebay stocks

The new entity will be the world's largest online classified advertising business. Did you know you can speculate on eBay's share price using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets!

The merger of eBay's classifieds business with Adevinta means the ads website will operate in 20 countries with annual revenues of around $1.8 billion. Adevinta was not the only bidder for eBay's classifieds business. Rival firm Prosus, which is a Dutch-listed entity of South Africa's Naspers, offered a $9 billion all-cash offer. Adevinta's initial bid was actually lower than this, offering $8 billion in cash and stock.

However, eBay's chief executive James Iannone persuaded Adevinta to raise its offer after convincing directors that the company should still retain some exposure to the classifieds ads business. There has been pressure from eBay's shareholders to unload some businesses to concentrate more on its main marketplace and some say the merger could help the company save on tax.

Disclaimer:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.

The Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.

To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.

Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.

Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.

Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.

STOCKS IN THIS ARTICLE

Comments

Back to all articles