- June 27, 2021
- Posted by: Stratford Team
- Category: Business
eBay sold its Classifieds business to Adevinta for $2.5 billion in cash and a 44% equity stake, but eBay will reduce its ownership to 33% (or less) over the next 18 months to resolve competition concerns raised by Austrian regulatory authorities.
eBay CEO Jamie Iannone called the deal an amazing opportunity for both of the companies to “combine the talent and skill needed to create a best-in-class global online classifieds business.”
What will eBay do with the after-tax net proceeds of $2 billion? Buy back more shares, which companies do to “boost the value of the stock and to improve the financial statements,” according to Investopedia.
eBay is increasing its estimated share buyback from $2 billion to $5 billion, it disclosed in Friday’s press release.
“By joining Adevinta, the eBay Classifieds’ business has an enormous opportunity ahead,” Iannone said. “We are optimistic that the breadth of talent and collective…
