eBay reacted to the story the Wall Street Journal broke that it is closing in on the sale of its Classifieds Group by issuing a statement effectively confirming the report.
The company acknowledged it has been in discussion with multiple parties regarding a potential transaction.
Unlike the Wall Street Journal that named interested parties, eBay did not get into specifics. However, eBay did say it expects to have an update on this process by the middle of the year.
Much of the statement reiterates various efforts the company has made to maximize shareholder value and how it has “executed numerous value-creating actions,” including the recently completed sale of StubHub to Viagogo.
The statement also had a quote from Scott Schenkel, Interim CEO of eBay Inc.
“eBay’s Board and management are committed to driving significant returns to shareholders by maximizing the value of Classifieds and positioning our Marketplace business for long-term success. The Classifieds review process, together with the StubHub sale and our initiatives to increase volume, revenues, margins, and cash flow while continuing to invest in long-term profitable growth, demonstrate this commitment. We are acting with urgency while focusing on the ultimate objective of maximizing the value of Classifieds.”
It seems there won’t be breaking news of a sale tomorrow or within a few days. But by effectively confirming the Wall Street Journal story, it seems apparent the possibility of selling the Classifieds Group is extremely likely, and the company is targeting the second quarter of 2020 to get this done.
Once it finds a buyer for the Classifieds Group, it can concentrate on finding a new “non-interim” CEO that will lead the core marketplace.
The full statement on the status of the strategic review process is available here.
Do you think this eBay Strategic Review process is taking too long and possibly damaging the growth of the core marketplace?
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