Update: Press release is here. It is surprisingly brief, reinforcing the rumor that eBay hastily accelerated the announcement due to the rumors.
It looks like the rumors forced eBay’s hand and they are announcing the deal earlier than expected – they are acquiring San Francisco-based StubHub for $285 million plus the cash on StubHub’s books, which is about $25 million. The deal has been signed and should close in 30 days or so. eBay will be releasing a press release shortly.
The original source of the leak may have been one of the StubHub founders who left the company over a year ago.
StubHub is rumored to be doing $10 million or so in profit on $400 million in gross annual sales, implying just over a 30x multiple to EBITDA. That’s quite a valuation.