eBay’s decision on the potential sale of StubHub will be announced prior to the release of the ecommerce giant’s fourth quarter earnings in January.
eBay made the announcement as part of its Q3 results release, with its StubHub division driving revenue of $306m for the three months to September 30, up five per cent. GMV of $1.2bn was flat year-over-year.
The timetable announcement comes after last month’s report that the company had hired Goldman Sachs to draw up options for selling or breaking up StubHub and its Classifieds segment.
Scott Schenkel, eBay interim chief executive, told investors: “We think [StubHub is] a wonderful asset that will continue to grow and has tons of opportunities, as a standalone or as a part of our portfolio and we will update you within the next three to four months as to the plans.”
In its earnings statement, the group said: “eBay continues to review the role and value of StubHub and Classifieds in its portfolio to determine the best path forward and anticipates sharing an update on the StubHub business before the next earnings release.”
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.
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.
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