EBay is expected to experience a restructuring of its operations as the company finds itself grappled with suits against potential payment problems in PayPal, although the company split up with PayPal quite a little while ago. EBay is currently expected to begin investing in start-ups keeping in mind the tagging plans it has for its better future from the e-commerce marketplace.
EBay on Friday announced that it has initiated discussions with numerous companies for selling its own classified-ads business. The statement affirms the first report from WSJ that EBay is in the market searching for potential buyers. Investors have been pushing EBay to sell its classifieds business since more than a year now, but the company failed to separate it from its core business. However, having separated its ticketing unit, StubHub, which it offered to Viagogo for USD 4 billion in December, EBay selling its classified-ads business was more or less confirmed.
The names of companies which demonstrated interest in purchasing EBay’s classifieds business weren’t revealed. However, according to a report released by the Wall Street Journal, private equity firms Blackstone Group and TPG, African e-commerce giants, Naspers, and Axel Springer, the publishing company from Germany, are amongst the names most interested to finish the deal with EBay. The company said it will come up with an upgrade on the final purchaser by the middle of 2020, together with all the potential buyers expected to come up with an official sign of interest by March. The information brought in some expected favorable impact as EBay shares traded 1.46 percent up in USD 38.24 per share, marginally better than Morningstar analyst, R. J. Hottovy’s fair value for EBay of USD 38 per share.