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.