eBay Secures $2.2B in Adevinta Share Sale to Private Equity Giants
In a major financial move, eBay has agreed to sell its remaining stake in online classifieds leader Adevinta to private equity firms Permira and Blackstone for $2.2 billion in cash plus a 20% equity stake in the newly privatized company. The deal, pending regulatory approval, is expected to close in Q2 2024.
The Backstory: Adevinta’s Acquisition of eBay Classifieds
- Adevinta originally acquired eBay’s classifieds division in a $9.2 billion deal in 2020, leaving eBay with $2.2 billion cash and 540 million Adevinta shares.
- The Norwegian publisher Schibsted, Adevinta’s majority owner at the time, is now taking the company private through Aurelia Bidco Norway AS, a special-purpose entity created for this transaction.
Key Financial Details
- Total valuation: eBay’s entire Adevinta stake is now valued at $4.3 billion, a $1.5 billion increase from September 2023 reports.
- Previous sales: eBay sold part of its Adevinta holdings for $2.25 billion in 2021.
- Future options: Post-closing, Permira and Blackstone can purchase additional shares, potentially reducing eBay’s stake to 9.99% and generating another $1+ billion.
Strategic Shift: eBay’s Evolving Focus
This sale marks another step in eBay’s retreat from ancillary businesses:
- Classifieds: Revenue fell 3% YoY to $248 million in 2020, dwarfed by eBay’s core marketplace ($1.9B same quarter).
- Other divestments: Includes PayPal’s spin-off (2015) and StubHub’s sale to Viagogo ($4.05B, 2019).
Why Classifieds Lost Their Luster
Once a web staple, classifieds now face fierce competition from:
- E-commerce giants (Amazon, Walmart)
- Secondhand platforms (Poshmark, ThredUp)
- Local marketplaces (Facebook Marketplace, OfferUp)
eBay’s New Growth Strategy
The company is pivoting to:
- Niche collectibles: Acquired trading card marketplace TCGplayer ($295M, 2022) and sneaker authenticator Sneaker Con Digital (2021).
- AI-powered authentication: Purchased Certilogo (2023) to verify apparel/fashion items.
Financial Performance Snapshot
- Q3 2023 revenue: $2.5B (up 5% FX-neutral)
- Non-GAAP net income: $545M ($1.03 per share), beating estimates
What’s Next?
With regulatory approval pending, eBay plans to use proceeds for general corporate purposes while maintaining its commitment to return 125% of free cash flow to shareholders via buybacks/dividends through 2024.
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: Infinity Tools 1⁄2″ Shank Traditional Molding Router Bit
Image: Premium product showcase
Professional-grade infinity tools 1⁄2″ shank traditional molding router bit combining innovation, quality, and user-friendly design.
Key Features:
- Professional-grade quality standards
- Easy setup and intuitive use
- Durable construction for long-term value
- Excellent customer support included
🔗 View Product Details & Purchase
🛍️ Featured Product 2: Infinity Tools 1⁄2″ Shank Thumbnail Router Bit
Image: Premium product showcase
Professional-grade infinity tools 1⁄2″ shank thumbnail router bit combining innovation, quality, and user-friendly design.
Key Features:
- Cutting-edge technology integration
- Streamlined workflow optimization
- Heavy-duty construction for reliability
- Expert technical support available
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
