eBay has completed the previously announced sale of its ticket marketplace StubHub to Viagogo for $4.05 billion in cash, resulting in net proceeds of $3.1 billion.
eBay also said it was expanding its share buyback plans for 2020 from $1.5 billion to $4.5 billion.
eBay interim CEO Scott Schenkel said in a press release:
“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.
“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.”
You can find the full press release on the eBayInc.com website.
What a clown show eBay is. As anyone who knows how this company operates, and as expected, they’re going to dump all of the StubHub cash into buybacks. Wow who could have guessed that? This literally means they are NEVER going to do anything about the marketplace. Site issues, errors, checkout problems, declining sales, and an exodus of buyers and sellers will continue. As usual, they’re running another orchestrated con job in an attempt to pump the stock price or at least keep it afloat. It’s all they ever do. But hey, while eBay deteriorates at least you know the executives, activist investors, and all other big players involved will be trying to cash out at higher prices. All of them have ZERO interest in eBay’s customer base, future growth, or the least bit of competence. ZERO!
HMM. Stock price is up roughly $2.50
https://seekingalpha.com/article/4324431-ebay-stock-16-total-yield-based-on-buybacks-and-dividends
This is literally what you do when you want to inflate the value of the stock and the underlying company is failing. Any guesses what executive compensation is tied to? I’ve seen derelict buildings with better infrastructure. What a complete and total joke.
Well either Elliott got out voted on this or they have gotten inside and now also see that trying to fix Ebays platform is no longer cost effective as their stated goal was to take the money from the sale of StubHub and start fixing the Ebay Marketplace. All Buying back the outstanding Stock is going to do is drive the Selling Price up slightly until once again they announce another quarter of pathetic earnings from operations. It is becoming all too clear that Ebay’s Management as well as the BOD has given on trying to make Ebay a player in the Ecommerce Marketplace going forward. All they will be doing is cutting any signs of fat so that they can piece out the company and end the years of misery that Donohoe and Wenig brought on this company. Just goes to show that once again the Monkeys were smarter than Ebay Management.
We all should help them in abandoning ship by moving as much of our products completely off of Ebay onto our other sites since they plan on doing nothing to try and help their sellers going forward. If GMV continues to drop each quarter going forward, Ebay’s stock price should also start dropping further and further each quarter until even buying their stock back will no longer be any help.
Way to go Ebay, you just showed the entire world that even you know that your site cannot be fixed.
I fear you are right Silver Ice King. There is no hope for eBay now. It’s heading for a fire sale and that’s all there will be. How disgusting that these lawyers and financiers have no care or consideration for what once was an incredible institution. I pray they all get their dues.
A company that is paying dividends and buying back its shares is a great investment for the shareholders (of which I am one).Geetar posted a link above that explains this very point in great detail. If you are an Ebay shareholder good things are coming! . .