Adevinta acquires eBay’s Classifieds business unit in $9.2B deal

mood · Jul 21, 2020

Adevinta acquires eBay’s Classifieds business unit in $9.2B deal
July 21, 2020
https://techcrunch.com/2020/07/21/adevinta-acquires-ebays-classifieds-business-unit-in-9-2b-deal/

Consolidation continues apace in the world of e-commerce, and today it was the turn of the classified ads market. Today, eBay announced that it had reached a deal to sell off its Classifieds business unit to Adevinta, a Norway-based classified ads publisher majority owned by Norwegian publisher Schibsted.

The deal is valued at $9.2 billion, which includes eBay getting $2.5 billion in cash and 540 million Adevinta shares. The deal makes eBay a 44% owner of Adevinta, with a 33.3% voting stake.
Adevinta’s interest in eBay was reported earlier in the week, but with the deal coming at a much lower valuation, of $8 billion.
Click to expand...

More generally, it caps off months of speculation about the future for the classifieds business, which has come out of long-term pressure spurred by activist investors for eBay to rationalise what had once been a sprawling e-commerce business empire
[...] Now, all three of those business units are no longer a part of eBay.
Early mover
With little needed but text and a search facility to create a very basic list of offers, classifieds were one of the first early “hits” of the internet, disrupting newspapers and one of their traditionally most consistent revenue streams (not so anymore, of course). Classifieds was an obvious area for eBay to move into in the early days: [...]

But over the years, the tech behind what constitutes a “classified ad” has changed, and so have expectations from buyers and sellers.
Click to expand...

For now, there are no announcements of layoffs or other moves, with eBay’s classifieds executive team coming over with the deal.

“We are excited for our local classifieds brands to join Adevinta and shape a global leader in an industry full of potential.”
The deal is expected to be completed in the first quarter of 2021, subject to regulatory and shareholder approvals.
Click to expand...

Adevinta: Adevinta signs agreement to acquire eBay Classifieds Group

Deal creates the world’s largest online classifieds group with an extensive footprint and leading marketplace brands
Click to expand...

mood · Jun 18, 2021

Adevinta, eBay clear final hurdle in $13 bln advertising tie-up
June 18, 2021
https://www.reuters.com/business/ad...-hurdle-13-bln-advertising-tie-up-2021-06-18/

Summary

Austrian competition authority OKs deal

Firms will form world's No. 1 classified ads group

Transaction worth $13 bln at current share price

EBay must cut Adevinta stake to no more than 33%

Click to expand...

OSLO, June 18 (Reuters) - U.S. e-commerce group eBay (EBAY.O) and Norway’s Adevinta (ADEV.OL) have secured final regulatory approval for a tie-up of their global classified ads businesses, the Norwegian firm said on Friday.

Under a deal struck last year, Adevinta will acquire eBay's Classifieds Group in return for $2.5 billion in cash and 540 million shares, valuing the transaction at around $13 billion at current stock market prices.
The final regulatory approval came from the Austrian competition watchdog after eBay agreed to reduce its ownership stake in Adevinta during the next 18 months, the Norwegian firm said.
Click to expand...

The compromise removes the sole outstanding obstacle to the deal following a go-ahead from Britain's Competition and Markets Authority earlier this month. read more

"Adevinta is pleased to announce that closing of the transaction will be initiated shortly and is expected to complete on or about 25 June," the Oslo-listed company said in a statement.
Click to expand...

Log in or Sign up

Adevinta acquires eBay’s Classifieds business unit in $9.2B deal

mood Updates Team

mood Updates Team

Log in or Sign up

Adevinta acquires eBay’s Classifieds business unit in $9.2B deal

mood Updates Team

mood Updates Team

Useful Searches