eBay has completed the sale of StubHub to Viagogo for $4.05 billion in cash.
The completion of the transaction results in net proceeds of $3.1 billion. With the divestiture of StubHub complete, the company is updating its capital allocation plans as well as first quarter and full year guidance figures.
For the first quarter of 2020, the company now expects net revenue between $2.31 billion and $2.36 billion, reflecting the impact of removing StubHub. The company now expects GAAP earnings per diluted share from continuing operations in the range of $0.54 to $0.57 and non-GAAP earnings per diluted share from continuing operations in the range of $0.72 to $0.75. The increase versus previous guidance reflects the benefit of share buybacks and investment timing, partially offset by the impact of removing StubHub.
“The completed sale of StubHub to Viagogo is a great outcome both in terms of the $4.05 billion sale price and the potential StubHub has with its new owner,” said Scott Schenkel, interim CEO of eBay. “The StubHub transaction reinforces our commitment to creating shareholder value and is consistent with other steps we have taken such as margin improvement, share buybacks and issuing dividends. We are operating with discipline and focus, improving financial performance and delivering improved customer experiences. On behalf of the eBay team, we’re excited to see how StubHub evolves in its next phase and benefits fans, partners and employees.”