eBay Inc., a global commerce leader that connects millions of buyers and sellers around the world, issued the following statement regarding the previously announced strategic review of eBay’s Classifieds Group (“Classifieds”).
eBay has been exploring potential value-creating alternatives for Classifieds and continues to be in active discussions with multiple parties regarding a potential transaction. As previously noted, eBay expects to provide an update regarding this process by the middle of the year. eBay remains committed to maximizing the value of Classifieds for eBay shareholders.
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The strategic review of Classifieds is part of eBay’s broader portfolio review, which resulted in the successful sale of StubHub for $4.05 billion in cash.
“eBay’s Board and management are committed to driving significant returns to shareholders by maximizing the value of Classifieds and positioning our Marketplace business for long-term success,” said Scott Schenkel, interim CEO of eBay Inc. “The Classifieds review process, together with the StubHub sale and our initiatives to increase volume, revenues, margins, and cash flow while continuing to invest in long-term profitable growth, demonstrate this commitment. We are acting with urgency while focusing on the ultimate objective of maximizing the value of Classifieds.”
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In addition to eBay’s portfolio review, the Company’s management team has executed numerous value creating actions since the beginning of 2019 that are transforming eBay’s business and strengthening its foundation for growth. Among others, these actions include:
- Scaled Managed Payments in the US and Germany; by 2022, Payments is expected to generate $2 billion of revenue and $0.5 billion of operating income;
- Delivered a point of margin improvement and committed to at least 2 additional points of margin expansion by 2022 while investing in revenue growth initiatives;
- Executed $5.0 billion in share buybacks and recently announced expansion of 2020 share buyback plan from $1.5 billion to $4.5 billion;
- Implemented eBay’s first ever dividend and committed to a 14% increase in 2020;
- Increased focus on Marketplace volume growth with a reorganization of the executive leadership team and a re-prioritized customer-focused plan that includes improved vertical buyer experiences, more data & tools for sellers, and increased platform conversion leveraging an expanded structured data foundation.
eBay’s Board and management team are confident that the above actions will help achieve the previously stated priorities for 2020 and position eBay for sustainable, profitable long-term growth.
Goldman Sachs & Co. LLC and LionTree Advisors LLC are acting as financial advisors to eBay on the strategic review of Classifieds, and Wachtell, Lipton, Rosen & Katz is acting as legal counsel.
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