Ebay is reportedly getting close to a deal to sell its classified ads business to Adevinta, a Norwegian company that runs online marketplaces across Europe and Latin America. According to a Wall Street Journal report, if the negotiations are successful, a cash and stock deal could be announced as soon as Monday. The transaction is expected to value eBay’s classified business at about $8 billion.
The Wall Street Journal first reported in February that eBay was planning to sell off its classifieds business, with prospective buyers named at that time including private equity firms TPG and Blackstone Group, Naspers and German publisher Axel Springer SE.
More recently, Prosus NV, an Amsterdam-based investment firm that is controlled by Naspers, emerged as a contender, but Bloomberg reported over the weekend that negotiations hit a bump because eBay wants to maintain a stake in the classifieds business after selling it.
Activist shareholders Elliot Management and Starboard Value LP have pushed eBay to sell off non-core business units to focus on its marketplace, resulting in the sale of StubHub to viagogo for more than $4 billion last year and the appointment of a new chief executive officer.
Ebay’s classifieds division operates mostly outside of the United States, including in Canada, Europe, Africa, Australia and Mexico. If Adevinta ends up acquiring it, it can expand its international portfolio of peer-to-peer e-commerce platforms.
An Adevinta representative told TechCrunch the company had no comment on the reported negotiations. TechCrunch has also reached out to eBay.
Ebay said in its last quarterly earnings report, issued in April, that it was “explor[ing] potential value-creating alternatives for its Classifieds business, is holding active discussions with multiple parties and anticipates having an update by the middle of the year.”
During the first quarter of this year, eBay’s main marketplace business generated $2.1 billion in revenue, down, while its classifieds business saw $248 million in revenue. In 2019, the classifieds business made $1.1 billion in revenue, versus $7.6 billion for eBay Marketplace, which is weathering competition from larger online rivals like Amazon.