StubHub sale in the works? CNBC is reporting that according to sources, eBay is moving forward with a potential sale of ticket marketplace StubHub.
The sources claim there are multiple potential buyers interested in acquiring StubHub. Shares of eBay briefly jumped up 2.8% on the news by CNBC, but have retreated since then.
Earlier this year activist investor pressure from Elliott Management prompted eBay to announce a strategic portfolio review.
eBay has come under fire for not performing at the same level as other ecommerce companies have over the last few years.
Elliott Management believed it was time for eBay management to focus on its core business, the marketplace business, and sell off assets such as StubHub and its classifieds business.
While eBay management initially fought back on these ideas, it later relented and announced a portfolio review.
eBay lost vision of core marketplace
Many eBay sellers believe eBay has lost its vision with the marketplace business. Investors seem to agree as they stock price for a long time just floundered.
Although this year the share price went from about $28 to $40, most of the gain was in the first two months when Elliott Management took a larger position in the company.
As a company, eBay is profitable and in no need to raise cash. Therefore, a sale of StubHub would have to serve the purpose of refocusing the company to its core marketplace business.
eBay is scheduled to report quarterly earnings after the today (Wednesday).
The company declined comment to CNBC and let’s see if they address this report in their earnings press release or during tonight’s earnings call.