EBay Set to Buy Inc. 500 Company for $310 Million
StubHub, an online ticket reseller that ranked No. 8 on the 2006 Inc. 500 list, will be acquired by eBay (NASDAQ:EBAY) for $310 million, the companies announced Thursday after months of speculation surrounding the deal.
San Francisco-based StubHub, which was founded in 2000, grossed more than $400 million last year, and is considered a leading player in the online resale market for sports, concert, and other event tickets.
The company provides a secure way to connect buyers and sellers of tickets, and offers a money-back guarantee if buyers don't receive their tickets. EBay, the online auction giant, is considered StubHub 's biggest competitor.
"StubHub has been extremely successful in the online tickets segment, and it's a perfect complement to eBay's tickets business," Bill Cobb, president of eBay's North America Marketplaces, said in a statement.
The deal will allow eBay to expand its online ticket offerings and presence in the secondary ticket market, while giving StubHub access to the site's resources and expertise.
"StubHub's business model is an excellent fit with eBay, a company we've admired for a long time," StubHub founder and CEO Jeff Fluhr said in a statement. "StubHub exists to serve passionate fans -- and we feel great knowing our customers will benefit from the power of eBay and its community of users."
The deal, which is pending approval by regulators and StubHub shareholders, is expected to close during the first quarter of the year.