viagogo took to purchasing the online ticket exchange platform, StubHub, from eBay with a 4 billion dollar deal. With this move, viagogo acquired one of their strongest competitors, and as a result, actively united the two companies. Upon announcement, the interim chief executive officer of eBay, Scott Schenkel spoke out on the driving force behind the decision.
“We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders. Over the past several months, eBay’s leadership team and Board of Directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub. We firmly believe in the StubHub business and we are excited about its future growth potential with viagogo as its owner.”
Notably, the deal is due to close by the end of the first quarter of 2020. This decision will allow viagogo’s founder, Eric Baker, to return to the company he co-founded in business school – StubHub.
“It has long been my wish to unite the two companies. I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared future. Buyers will have a wider choice of tickets, and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans – more choice and better pricing.”
Finally, it will be interesting to watch how viagogo shapes up against competition. Overall, the move will bring a significant potential for expanding, allowing viagogo a larger share in the ticket resale marketplace.