eBay to sell classified ad business to Adevinta for $9.2 billion

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During the first quarter of 2020, eBay’s main marketplace business generated $2.1 billion in revenue, substantially down from $7.6 billion in 2019. eBay was competing with Amazon and it showed in the numbers.

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The classifieds business made $248 million in revenue in the first quarter of 2020 versus $1.1 billion in 2019.

In April, eBay brought on a new CEO, Jamie Iannone, who stepped into the role effective April 27. He was also elected to eBay’s board.

EBay’s plan to sell the classifieds business was first reported in February by the Wall Street Journal. At that time prospective buyers included private equity firms TPG, Blackstone Group, German publisher Axel Springer SE, and Naspers.

More recently an Amsterdam investment firm Prosus NV, controlled by Naspers, expressed their strong interest in coming to terms. But negotiations broke down because eBay was intent on maintaining a stake in the classifieds business, Bloomberg reported. 

eBay is selling off its’ non-core business units

eBay has long been a large and diverse enterprise. A savvy group of its’ shareholders believed that it was too big to maintain profitability as more companies begin to enter the space.