Wednesday, August 13, 2008

eBay has Another Crown Jewel!

I did find something positive to write about concerning eBay!

I'm sure when you think about eBay Crown Jewels the first thing that comes to mind is PayPal and that certainly is the case. PayPal is the industry payments leader. But, there is another Crown Jewel in eBay's collection and that is StubHub.com

StubHub was acquired 2 years ago (January of 2007) for $307 million and has been run as a separate company for the entire time it has been in the eBay fold.

Rather than trying to integrate StubHub into the eBay.com platform they have chosen to manage the business as a separate brand and the results are amazing. In fact I just recently saw a TV commercial for StubHub and it looks like the TV campaign will continue.

StubHub's revenue and profit numbers are not separated from the marketplace business segment, so it is difficult to get a read on how much the business generates annually, but from everything I can gather it is performing very well.

In fact if eBay were to take StubHub's numbers out of their marketplace GMV and profit numbers it might paint an even bleaker picture of eBay.com (Sorry I couldn't stay positive for the whole post).

StubHub President and General Manager Chris Tsakalakis and his team have done an exceptional job in growing StubHub. Chris formerly grew the eBay Stores business into the #1 online stores platform in the world - part of me wishes he were still there.

The success of StubHub should be a lesson to eBay managers on what to do with their business assets. Set them free and let them grow. I would hope that they would consider spinning of the store platform and the auction business and running it like they do StubHub.

Just my 12%

5 comments:

Henrietta said...

Yup.

I can't honestly remember any Bayspeak when Chris Tsakalakis was running Stores. He was always very upfront and straightforward.

Good for him at StubHub.

I see more of the VP layer are bailing out of the sinking ship.

Tony P. said...

Yeah, I liked Chris as well. He posted in the store's board, every so often, and occasionally it would get somewhat heated.

He wasn't adverse to dishing it right back at ya, but not in a highhanded manner like JD. Chris would never have called us 'noise'.

I'm actually surprised that he's still there. After the '06 store fee fiasco (ie first impliment of current plan) and the exodus of mgmt braintrust that followed, I'd have guessed he'd have followed Jordan.

Oh well, even ebay makes a good decision occasionally, right? :-)

Rich said...

Thanks for letting us know eBay owns Stubhub. I'll be sure and not use that site too!

permacrisis said...

StubHub's growth falls in line with the second half of your manifesto: the 'Get out of the way' part.

Hopefully management elsewhere has taken note.

Anonymous said...

...... if there is a massive change to the way StubHub does business AND Chris T. take a long long vacation to "visit family", that's NOT a good sign! Long-time Store Board folks will remember when SIS ended, and all of a sudden Chris T. was on vacation, and never heard from again! LOL.