eBay Shareholder Urges Company to Sell StubHub and 'Refocus' on Core Biz
An activist shareholder said Tuesday that eBay would be better off without StubHub or its classified ads businesses.
Elliott Management, which owns more than 4 percent of its stock, said in a letter to eBay that if it focused on its online marketplace, the company could double its share price to more than $63 by the end of next year.
"The separation of the Classifieds portfolio and StubHub will unlock even more value while allowing management to refocus on the core," Elliott said. "By undertaking a comprehensive strategic review and pursuing a separation of these assets, we believe that eBay can unlock an incremental ~$5 to ~$10 per share.
Shares of eBay Inc. jumped 8 percent in midday trading.
In a statement from its headquarters in San Jose, California, eBay said it will “carefully review and evaluate Elliott’s proposals.”
Elliott believes eBay’s classifieds business has a potential value of $8 billion to $12 billion, and put StubHub’s value between $3.5 billion and $4.5 billion.
"StubHub is non-core to the eBay Marketplace but would command significant value as a market-leading, scale business," Elliott said in his letter.