Adevinta Secures eBay Classifieds in Landmark $9.2 Billion Deal
In a major consolidation move for the digital classifieds sector, Norway’s Adevinta has acquired eBay’s Classifieds Group for $9.2 billion, creating the world’s largest online classifieds platform. The deal includes $2.5 billion in cash and 540 million Adevinta shares, making eBay a 44% shareholder in the combined entity with a 33.3% voting stake.
Key Details of the Transaction
- Valuation: Earlier reports suggested an \(8 billion deal, but the final agreement reached \)9.2 billion.
- Structure: eBay receives cash and equity, retaining significant influence in Adevinta.
- Synergies: The merger is projected to unlock \(150–\)185 million in operational efficiencies.
- Timeline: Expected to close in Q1 2021, pending regulatory approvals.
Strategic Rationale Behind the Deal
This acquisition marks eBay’s latest step in streamlining its operations under pressure from activist investors. The company previously divested PayPal (2015) and StubHub ($4B sale to Viagogo in 2019). The Classifieds unit, though profitable, saw Q1 2020 revenues dip 3% to $248 million, overshadowed by eBay’s $1.9B Marketplace revenue.
Jamie Iannone, eBay CEO, emphasized the deal’s long-term value:
“This sale allows us to focus on core Marketplace growth while maintaining a stake in the classifieds sector’s future.”
Adevinta’s Global Expansion
Post-acquisition, Adevinta will dominate 20 countries, integrating eBay’s 12 classified brands like:
- Mobile.de (Germany)
- Gumtree (UK)
- Kijiji (Canada)
- Marktplaats (Netherlands)
Rolv Erik Ryssdal, Adevinta CEO, highlighted the combined entity’s potential:
“We’re now the clear leader in online classifieds, with unmatched scale and innovation capabilities.”
Industry Context: The Evolution of Classifieds
Once a disruptor of newspaper ads, the classifieds sector now faces competition from:
- Facebook Marketplace
- Geo-targeted mobile apps
- Vertical-specific platforms
Consolidation has become critical for legacy players to maintain relevance. Adevinta’s move mirrors broader trends, as seen in Prosus’s OLX Group and Naspers’ investments.
What’s Next?
- No immediate layoffs: eBay’s classifieds leadership will transition to Adevinta.
- Schibsted, Adevinta’s majority owner, will absorb eBay’s Danish operations post-close.
- Regulatory scrutiny: The deal’s size may attract antitrust reviews in key markets.
This transaction reshapes the digital listings landscape, positioning Adevinta as the undisputed leader in a rapidly evolving industry.
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