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eBay hires Goldman Sachs to provide StubHub sale options

eBay has reportedly hired Goldman Sachs to draw up options for selling or breaking up StubHub and its classifieds segment.

The online e-commerce giant announced in March it would commence a strategic review of the company’s assets, including StubHub and its classifieds, following pressure from investors Elliott Management and Starboard Value.

eBay has seemingly now taken firmer steps to satisfy activist investors, with the Sunday Times reporting its appointment of Goldman Sachs to assess options.

In January, it was revealed in a letter to eBay that the activist investors believed the parent company should separate from StubHub to boost its stock.

It outlined a five-step plan to improve eBay’s “floundering” stock, including separating StubHub, worth $4.5bn (£3.8bn/€4.1bn), and its classified properties, worth $12bn, to focus on its core marketplace.

In July, CNBC cited sources who said there are “multiple” parties interested in buying StubHub.

Elliott has disclosed a 4 per cent stake in eBay, while Starboard reportedly holds about 1 per cent.