EBay’s $310 million purchase of ticket broker Web site StubHub is expected to pump the value of the slumping Internet auctioneer.
Analysts on Thursday praised the deal, saying StubHub will benefit eBay in a number of areas, specifically listings and geographic footprints plus an active user base and tight-knit community.
Over the past two years, eBay’s market value has dropped by nearly 50%, or $37 billion, as investors have grown concerned about sluggish growth in its online auctions.
The combo of eBay and StubHub, which allows ticket holders to resell ducats to sporting events and concerts, could become healthy competiton to the nation’s largest online ticketing agent, Ticketmaster, which has the TicketExchange auction service. Ticketing currently reps less than 1% of eBay’s business.
StubHub, which sold about $400 million in tickets last year, had been on the block for about 15 months.
The all-cash purchase is expected to close in April.
Shares of eBay closed up 3.2% Thursday at $30.23. The stock plummeted in the first six months last year from a high of $47.86 to a low of $22.83.