A maxi operation worth 9,2 billion dollars and a revolution that will change the face of eBay. All in one go. The well-known online sales and auction company has sold its ad business to Adevinta, a Norwegian group that manages online marketplaces. The agreement had been anticipated since Wall Street Journal and it was confirmed by both groups.
According to the provisions of the agreement, eBay will receive $2,5 billion in cash and approximately 540 million Adevinta shares, equivalent to a 44% share of the new group and 33,3% of the voting rights. Total price, as mentioned, 9,2 billion dollars.
Adevinta was spun off from Nordic media company Schibsted and floated on the Oslo Stock Exchange last year. While the name will say little or nothing to many, the Norwegian giant owns brands such as Leboncoin, France's largest online classifieds site, Brazil's OLX, and dozens of others across Europe, the Americas, and North Africa. Its also sites such as Subito, InfoJobs, Fotocasa and Paycar.
eBay Classifieds Group also includes brands such as Gumtree and Kijiji and delivers online classifieds to over a thousand cities around the world. In the first quarter of this year it recorded an operating result of 83 million dollars and a turnover of 248 million.
The deal, which is expected to close by the first quarter of 2021, targets 150-185 million euros of annual synergies within three years. Following the transaction, Schibsted's stake in Adevinta will fall to approximately 33% from 59%.
Following the operation, on the Oslo Stock Exchange the Adevinta group gains 36,54% to 15,04 dollars, while in the Nasdaq pre-market eBay rose by 1,83% to 59,54 dollars.
