RSSeBay Snags StubHub for $310 Million
By Ed Oswald | Published January 11, 2007, 2:34 PM
eBay said Thursday that it had purchased online ticket reseller StubHub in a deal valued at $310 million. The acquisition is expected to be completed by the first quarter of this year.
The auction site already has a fairly active ticket trade through its standard auctions, however the success of StubHub in recent months has made the site into one of eBay's biggest competitors. It grossed about $400 million in sales in 2006.
In a statement announcing the deal, eBay North America president Bill Cobb said the site complemented the auction sites preexisting business. "Together we can strengthen both businesses and provide fans with more choice and better service," he added.
This isn't the first time that the two companies have attempted to work out a deal. Reuters cited sources that claimed a $20 million deal was in the works in 2002, though it fell apart over disagreements in the valuation of the site.
Unlike other ticket resellers, StubHub has actual relationships with major league sports teams across the NFL, NBA, and NHL, and with several NCAA college sports organizations. The service attempts to connect buyers and sellers of tickets in a secure manner.
"This is a deal that makes a lot of sense for eBay since it is a business that is parallel to its core auction business," Internet pundit Om Malik said.
Financial analysts agreed, saying that eBay was picking up one of the best known brands in the ticket reselling industry, and a company with a proven business model.
though definitely not the best for pricing, www.showtimetickets.com is great for always having tickets to a lot of different venues, right up until curtain call....
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|As a sports fan and online consumer this makes me sad. I've bought/sold tix on ebay, and looked at stubhub a handful of times but never actually bought or sold anything on there.
A company like ebay could improve their system, find ways to lower prices and fees, or find other ways to improve their product and gain an edge over their competitors. Or they could just buy them out if they start to become a real threat.
Personally, I really liked to have the ability to compare prices on both sites if I was wanting to buy/sell tickets for an event. Guess I'll have to wait for the next reputable company to come along and provide competition in the ticket resale market.
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