Last on the block

22 January 2019 By Robert Cyran Follow @rob_cyran

The $30 bln online merchant has a history of spinning off bits of itself. It has, though, missed opportunities in its core business. While the activist may persuade eBay to offload StubHub, for example, the big payoff could be selling the marketplace unit to a buyer like Walmart.

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Elliott Management on Jan. 22 released a letter it had sent to eBay’s board of directors calling for the company to sell or spin off two of its businesses. The activist investment firm, which says it has an interest of more than 4 percent, worth $1.4 billion, in the online-commerce firm, said eBay could double its market value in two years.

Elliott said the company’s StubHub ticket service could be worth $3.5 billion to $4.5 billion on its own, and eBay’s classifieds businesses could be worth between $8 billion and $12 billion.

Elliott also called for operational improvements in the company’s core marketplace business, appropriate capital allocation and improvements in management.

Starboard Value has also taken a position in eBay, according to the Wall Street Journal. The activist fund is making similar demands to Elliott’s, according to the Journal’s source.

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