EBay Reportedly Eyes Sale of Classified-Ads Business

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXMPED5K1EC_M.jpg
© Reuters. © Reuters.

By Yasin Ebrahim

Investing.com – EBay is looking to offload its classified-ads business, with several suitors believed to have expressed an interest, The Wall Street Journal reported Friday, citing people familiar with the matter.

EBay (NASDAQ:) was up 2% on the news.

Its classifieds business, which could fetch about $10 billion, has been under strategic review over the past year, with eBay considering a range of options including a sale, spinoff or joint venture.

TPG and Blackstone (NYSE:), Naspers and Axel Springer SE have recently expressed interest in the classified-ads business, according to the report.

The review was borne out of pressure from two activist hedge funds, Elliott Management and Starboard Value, who urged the company to sell its assets and cut costs to turn around performance.

Elliott previously said eBay) shares could be worth $55 to $63 by the end of 2020 if the company adopted its recommended measures, including asset disposals.

“It is critical to recognize that eBay’s sustained underperformance is not due to a lack of potential or a poor end-market. Instead, we believe that eBay) has missed a number of actionable growth opportunities while distracted by non-core endeavors,” wrote Elliott Management partner Jesse Cohn. “These have been meaningful financial disappointments in their own right, but the larger cost was the diversion of attention from Marketplace.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.