eBay consumed StubHub
eBay (the company itself) has been going under lots of fascinating developments and earning boosts recently. Now they just extend their coverage into events biz. According to news from the guys at eBay today, they are buying online ticket scalper StubHub. Guess how much they are paying for it? US$310 million.
This is definitely good deal for both concerned, especially for the StubHub and its investors which include former football(NFL, not Soccer)quarterback Steve Young and BEA Systems co-founder Edward Scott. This will be eBay’s third major purchase in the last few years, following on from PayPal and Shopping.com. StubHub is the largest tickets-only reseller of concert, sports, and event tickets, selling more than $400 million worth of inventory during 2006. During its six years in business StubHub has brokered the sale of over 5 million tickets. eBay moves a lot of event tickets through its site, but as they dont actually own the tickets they keep themselves above any ticket scalping laws.
StubHub attracted 2.1 million unique visitors and generated 22.3 million page views in August, according to Nielsen/NetRatings. On the other hand eBay’s ticket section saw 309,000 unique visitors and 875,000 page views. So as can see StubHub was a definit competitor of eBay ticket section, at a cost of US$310 million getting rid of a major threat is definitely good for eBay.
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January 12th, 2007 at 9:23 pm
I think this definately gives stub hub a great deal of legitimacy. I, for one, had never used them before and had only heard of them in passing but this gives them a huge boost. Not only is it great PR, I mean who doesn’t love that, but no they get to say “we’re owned by google, we ARE legit”.