eBay in Advanced Talks to Sell Classifieds Business to Adevinta
eBay is reportedly finalizing a landmark deal to sell its classified ads division to Adevinta, a leading Norwegian online marketplace operator. According to Wall Street Journal sources, the cash-and-stock transaction could be announced imminently, valuing eBay’s classified unit at approximately $8 billion.
The Road to the Potential Deal
- February 2020: WSJ first reported eBay’s plans to divest its classifieds business, with interest from private equity firms and media companies
- Recent Developments: Prosus NV (a Naspers subsidiary) emerged as a contender before negotiations stalled over eBay’s desire to retain a stake
- Activist Pressure: Shareholders Elliot Management and Starboard Value LP have pushed for strategic divestitures to sharpen eBay’s focus on core marketplace operations
Strategic Implications of the Deal
If completed, this transaction would:
- Mark Adevinta’s expansion into new international markets
- Allow eBay to streamline operations following its 2019 StubHub sale ($4B to viagogo)
- Represent the latest move under new CEO Jamie Iannone (former Walmart executive)
Financial Performance Context
- Q1 2020 Results:
- Marketplace revenue: $2.1B (declining)
- Classifieds revenue: $248M
- 2019 Full Year:
- Classifieds generated \(1.1B vs. \)7.6B from core marketplace
Geographic Footprint
eBay’s classifieds business operates primarily outside the U.S., with significant presence in:
- Canada
- Europe
- Africa
- Australia
- Mexico
Official Statements
Both companies have maintained silence on the reports:
- Adevinta declined to comment when contacted by TechCrunch
- eBay previously stated in April earnings it was “exploring alternatives” for the classifieds unit with plans to update investors mid-year
“This potential deal comes as eBay faces increasing competition from Amazon and other e-commerce giants, prompting strategic refocusing.”
For more financial details, see our coverage of eBay’s Q1 2020 results.
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