Nov. 25 (UPI) -- Ebay announced Monday it plans to sell the ticket marketplace StubHub to overseas ticket competitor Viagogo for $4.05 billion in cash.
The transaction gives Viagogo, based in Switzerland, a stronger foothold in the United States. It also reunites Viagogo's chief executive officer Eric Barker, with StubHub, a company he co-founded while attending business school, but left before it was sold to eBay.
"We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders," Scott Schenkel, interim chief executive officer of eBay, said in a statement. "Over the past several months, eBay's leadership team and board of directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub.
"We firmly believe in the StubHub business and we are excited about its future growth potential with Viagogo as its owner," Schenkel continued.
Viagogo has grown to be a major online ticket option for events in Europe, Asia, Australia and Latin America while partnering with other brands in sports and entertainment. StubHub's business partners included all the major U.S. sports franchises like the NFL, NBA, Major League Baseball, the NHL as well as the NCAA.
"It has long been my wish to unite the two companies," Barker said in a statement. "I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared future.
"Buyers will have a wider choice of tickets, and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans -- more choice and better pricing," he continued.
The companies said the deal is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions. Ebay said it will use money from the sale for stock buybacks, dividends, and investing in mergers and acquisitions.