eBay Snaps up Stubhub $310 MILLION

[Linda Buquet]

Hope you don't mind me posting in your forum Larwee. Webmasters Universe seemd like the best place for this.

WOWSER another BIG acquisition!

eBay.com Acquires Stubhub for $310 Million

"eBay Inc. has acquired StubHub, a privately held company which is sort of the eBay of scalpers, as it’s a marketplace for the resale of concert, show, sports and other event tickets.

A smart acquisition by eBay enables it to expand its offerings and spinoff new sections of eBay, while also assuring that more StubHub users may pick Paypal over other payment methods.

Not only does this acquisition fit the eBay puzzle in a way Skype may not have, but it could also be seen as a defensive move, possibly blocking the usage (or preference) of Google Checkout within StubHub."

Read the rest at: http://www.searchenginejournal.com/?p=4248

[Larwee]

I agree that Webmasters Universe is probably the best place for this considering the subjects that are covered here.

This was a very smart move by eBay. Among other things is a competitor since eBay does ticket trade through its standard auctions. I have found that StubHub grossed around four $400 million in sales last year (2006).

There are many other ticket reseller, but StubHub is different than most of them because it actually has relations with the major professional sports teams as well as a number of college sports organizations.

In this case eBay is buying a company with a proven business model and it fits into what eBay is all about.