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Internet eBay to Buyout StubHub for $310 mil USD
Nirav Sanghani (Blog) - January 11, 2007 12:18 PM
Print E-mail del.icio.us 18 comment(s) - last by auctionmaster.. on Jan 24 at 11:38 PM
eBay will one day consume the world...but for now its sticking with sports tickets

eBay released a statement on Wednesday saying that they plan on buying out StubHub, an online resale market for sports tickets.  The agreement is estimated to be worth a total of $310 million USD, which is about equal to the current net cash at the time of the company’s closing.  The deal is expected to go through in the first quarter of this year depending on StubHub share holders and approval by regulators.

StubHub is the leading online sports ticket resellers, closing in at $400 million USD in gross ticket sales last year, reported CNET.  With its secure, money back guarantee and overnight delivery, StubHub grew into a ticket resale powerhouse.  The company acts as the middleman to ensure privacy of buyers.  Its biggest competitors are eBay, Ticketmaster, and Craigslist, on top of gray-market stadium scalpers.

This move by eBay chalks one up on its goal of expansion after loss in the Chinese market.  With its auctioneer website shutdown in China, the company needed a way to slightly hammer out the dent in their wallets.

"Online tickets is a business that's perfectly suited to eBay," stated Bill Cobb, President of eBay North America. "It's all about passionate fans, buying and selling tickets for their favorite teams, entertainment and events. And StubHub is the perfect complement to eBay's large Tickets category business – there's little overlap between StubHub's users and eBay's, and each has expertise to share with the other.”

Following the reports on Wednesday of eBay's buy out of StubHub, eBay shares closed down 45 cents, or 1.51 percent, to $29.30 on the Nasdaq.

No further information will be released until the eBay's fourth-quarter conference call on January 24.

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Marketing spin
By SomeYoungMan on 1/11/2007 1:43:55 PM , Rating: 2
Don't these conflict:
quote:

Its (StubHub's) biggest competitors are eBay, Ticketmaster, and Craigslist, on top of gray-market stadium scalpers.

quote:

there's little overlap between StubHub's users and eBay's, and each has expertise to share with the other


So, they are a major competitor but at the same time there is little overlap??




RE: Marketing spin
By Steele on 1/11/2007 1:49:31 PM , Rating: 2
Both. I think it means that people go to StubHub to buy tickets, while they go to EBay to buy old lamps, used cars, and L@@K!4@xx0R ALLIenWare Laptop!!!! New!!!L@@KBUYBUYNoTASHITTTYDELLCRAPCRAPBUY!!!!ROXXO zRz!!.

But at the same time, both deal in reselling stuff online.

Steele


RE: Marketing spin
By phaxmohdem on 1/11/2007 2:51:54 PM , Rating: 5
As an eBay powerseller, I'm offended by this post. I only use about half the ammount of exclamation marks in my titles as you portrayed.


RE: Marketing spin
By Jkm3141 on 1/12/2007 12:28:14 AM , Rating: 2
lol classic.


RE: Marketing spin
By h0kiez on 1/11/2007 2:03:12 PM , Rating: 2
What it means is that while being a competitor, those who use StubHub do some mostly exclusively instead of eBay...meaning that they pick up lots of new customers with the purchase, not a bunch of people that are already active eBay sellers.


By sxr7171 on 1/11/2007 4:03:16 PM , Rating: 2
When I see how much it costs me in fees to sell anything on Ebay and the fact that even when buying stuff prices are not as competitive as they used to be since sellers have to cover those insane fees, I really want to stop using Ebay. Between Ebay and Paypal fees it can cost a seller up to 7% of the item's sale price to sell the item and get paid by Paypal (which is also owned by Ebay).

I cannot wait for the rise of Google Checkout and the introduction of Google Auctions. It will bring some good old fashioned competition in a market dominated by a monopoly.




By SunAngel on 1/11/2007 4:15:00 PM , Rating: 3
must have been awhile since you've sold something. the current fee rate between ebay and paypal is 9.6%. and i've believe there is a rate increase due sometime this month.


By sxr7171 on 1/11/2007 4:32:48 PM , Rating: 2
I sold some stuff in December and I just mentally estimated the rate, but 9.6% is even worse. This is just terrible. You would think that they priced themselves out of any business but sometimes Ebay is the only place to go for selling/buying certain used and rare items and they certainly capitalize on that.


By animedude on 1/12/2007 8:16:32 AM , Rating: 2
You didn't add the listing fee. It is 12.5%-13% to be exact.

listing fee + fvf fee + paypal fee


By animedude on 1/12/2007 8:16:43 AM , Rating: 2
You didn't add the listing fee. It is 12.5%-13% to be exact.

listing fee + fvf fee + paypal fee


By animedude on 1/12/2007 8:16:51 AM , Rating: 2
You didn't add the listing fee. It is 12.5%-13% to be exact.

listing fee + fvf fee + paypal fee


oh goodie!
By h0kiez on 1/11/2007 1:11:44 PM , Rating: 5
With its secure, money back guarantee and overnight delivery, StubHub grew into a ticket resale powerhouse. The company acts as the middleman to ensure privacy of buyers.

That'll all be gone by April.




RE: oh goodie!
By One43637 on 1/11/2007 1:33:35 PM , Rating: 2
quote:

By h0kiez on 1/11/2007 1:11:44 PM , Rating: 2
With its secure, money back guarantee and overnight delivery, StubHub grew into a ticket resale powerhouse. The company acts as the middleman to ensure privacy of buyers.

That'll all be gone by April.



lol... oh wait damn there's a big possibility that will happen. /sobs


...
By bplewis24 on 1/11/2007 4:58:15 PM , Rating: 1
Does this mean they will stop with the seller rate hikes anytime soon?

Brandon




RE: ...
By SunAngel on 1/12/2007 8:30:49 AM , Rating: 1
another rate increase is due before the end of the month. many powersellers were against it, but bill cobb went forward with increase anyhow. bill's justification was it was necessary for ebay's services to stay competitive.


RE: ...
By jskirwin on 1/12/2007 9:30:59 AM , Rating: 2
quote:
. bill's justification was it was necessary for ebay's services to stay competitive.


Against who?

Ebay has no competition worth mentioning.


RE: ...
By SunAngel on 1/12/2007 10:23:01 AM , Rating: 1
i heard this was in reference to Google's soon to be free checkout system. i was thinking if paypal's revenues are expect to decrease because of google checkout they are probably increasing ebay fees to soften the loss of revenue from the increase use of google checkout. however, with the purchase of this new ticketing service, the increase fees may also be used to help finance the interest on the purchase of the service. who knows for sure. what is certain is the 9.6% floor for using ebay and paypal together will increase before the end of the month.


Auctioning
By auctionmaster on 1/24/2007 11:38:59 PM , Rating: 2
I don't understand why eBay keeps raising rates. I hope they don’t go too far. My wife started using http://www.oltiby.com and it seems that I will follow the lead.




"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook











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