Wednesday, January 10, 2007

eBay and StubHub Round 2!

I wasn't going to write much this week but I just saw a report on CNBC regarding the rumor of a deal between eBay and StubHub. These rumors have been out there for several years but according to CNBC they are finalizing the deal right now. Apparently eBay could have purchased StubHub for $20 Million a few years ago, today the price is believed to be around $300 million.

More to come.

UPDATE! It looks like the deal is official. Here is a press release from ebay.

According to Ben Charny of Marketwatch:

"EBay has its own ticket marketplace as well. But it's unclear just how robust it is and what impact the StubHub purchase will have on it.
If traffic is any measurement, however, StubHub's business is far more active than eBay's.
StubHub saw 2.1 million unique visitors and generated 22.3 million page views in August, according to Nielsen//NetRatings. EBay's ticket section saw 309,000 unique visitors and 875,000 page views."

Looks like Stubhub was the leader in this vertical.

Here is a link to my thoughts about StubHub way back in Oct. I sill think, if this deal happens, it is a good move for eBay. I would rather see 9 more of these deals than another Skype.

6 comments:

Frank Ross said...

Wow, that is what I call hindsight opportunity lost. I wonder if eBay just could not decide to plunk down the $$ back then? I'll bet they shelved it for that wonderful Skype deal.

Randy Smythe said...

It looks like ebay is finally using that new Credit Line of there’s. The TSE (Tailored Shopping Experience) looks to be wave of the future for eBay: Half.com, Shopping.com, Rent.com and now possibly StubHub.com. It doesn’t look like Wall Street thinks much of the rumor because the stock lost 1.5% again today

Anonymous said...

I just wonder if ebay is going to fundamentally change the way StubHub works, since I have found SH to be a much more efficient way for obtaining tickets than getting them on eBay

Randy Smythe said...

If eBay stays true to form they won't change anything immediately but they soon won't be able to help themselves and will eventually change something. In the case of Shopping.com this has been beneficial. In the case of Half.com you might hear more complaints that they ruined the site. I think they should have changed Half.com even more than they did.

StubHub should be safe for a while.

JB said...

I'm unimpressed by this deal. I wrote some thoughts on it here:

http://dontcostnothing.wordpress.com/2007/03/09/stubhub-the-biggest-fraud-in-the-ticket-business/

ColoradoJimH@yahoo.com said...

I'm not impressed by StubHub. They recently sold invalid tickets to me. Read more at: http://stubhubsoldmeinvalidtickets.blogspot.com/