eBay, Inc. (NASDAQ:EBAY) revealed on Tuesday that it has finally reached an agreement to acquire Spanish ticketing platform Ticketbis, for $165 million as a part of its effort to expand StubHub internationally.
The agreement is expected to be completed later this year. Devin Wenig, eBay CEO, believes that the company’s acquisition of Ticketbis will enable StubHub to grow its presence in the international market.
Presently, Ticketbis has operations in nearly 50 countries in Asia, Latin America, and Southern Europe. Since its establishment in 2009, the Spanish ticketing platform has received over $25 million worth of funding. eBay’s flagship ticketing business, on the other hand, only operates in the UK, Germany, and Mexico. Originally, it was founded in 2000 and acquired by eBay in 2007 for $310 million. StubHub was introduced in the UK more than four years ago. It entered Germany in September.
In 2015, StubHub had a gross merchandise value (GMV) of $3.25 billion. For the full-year, it had a total revenue of $725 million. Wenig believes that the deal will help StubHub reach the international markets, further driving revenue. It is a clear statement of the company’s commitment to fuelling its ticketing arm.
Aside from expanding to Mexico this month, StubHub also revealed a new logo in its attempt to rebrand and attain a wider reach. Primarily, it wants to appeal to today’s ‘selfie generation’.
What StubHub Means for eBay
eBay has long been struggling in the e-commerce industry— or at least since it split from PayPal Holdings, Inc. (NASDAQ:PYPL) last year. The online retailer is having a hard time turning its figures around since then.
With this new venture, eBay seeks to make more out of StubHub, which is the company’s primary mover nowadays. In the latest quarterly report from eBay, StubHub recorded a 34% revenue growth to $177 million. The ticketing service provider’s growth is well above eBay’s overall growth rate of 4% for the said period.