EBay has been under pressure from activist investors Starboard Value and Elliott Management Corp. to sell assets and focus on its main online marketplace eBay.com.

(Bloomberg)—EBay Inc., No. 5 in the ranking of Digital Commerce 360 Top 100 Online Marketplaces, agreed to sell its online classifieds business to Adevinta ASA for $9.2 billion, ending one of the largest auctions of the year. The Norwegian digital marketplace owner, now the largest business in that sector globally, is already looking ahead to its next deal.The tie-up means eBay will get $2.5 billion of cash and 540 million shares in the Norwegian firm, the companies said in a statement on Tuesday. Shares in Adevinta rose as much as 39%.Adevinta beat out Naspers Ltd.’s Prosus NV and a private equity consortium that included Blackstone Group Inc., Permira and Hellman & Friedman, who’d also been pursuing the unit, people familiar with the matter had said. The bid from Oslo-based Adevinta, which operates a number of online marketplaces across Europe and Latin America, got a surprise boost because eBay wanted to keep a significant stake in the business, people said.

While Adevinta CEO Rolv Erik Ryssdal is focused on closing the deal, he said he’s got his eye on the next acquisition. The company used new debt and its existing cash to fund the deal, taking out a $3 billion bridge loan to refinance its existing borrowings and cover transaction and financing fees, and said it expects to “de-lever quickly” as earnings expand.

“There are other players in the industry that also would be very welcome in this family,” he said in a phone interview on Tuesday. “That’s more realistic in the medium term. But certainly, there are opportunities to extend the family even further.”

The deal, Norway’s biggest in more than a decade, will significantly boost the size of Adevinta, which was spun off from Scandinavian media conglomerate Schibsted ASA last year. Ryssdal, who’s been charged with expanding the company, said in an interview last week that the industry has seen a surge in demand for online shopping buoyed by the Covid-19 lockdowns.

Key Deal Terms for eBay Selling Adevinta:
  • Deal gives eBay a 44% ownership stake and 33.3% voting stake in the new company, making it the largest shareholder in Adevinta
  • Transaction is expected to close by the first quarter of 2021
  • Combined company had $1.8 billion in sales and $600 million in earnings before interest, taxes, depreciation and amortization last year
  • Schibsted’s ownership will decrease to about 33% from 59%
  • Once this deal closes, Schibsted has agreed to buy eBay Classifieds’ Danish entity for $330 million. This reduces Adevinta’s cash cost of the first eBay transaction to $2.17 billion, the company said
  • Goldman Sachs Group Inc. and LionTree Advisors advised EBay. Citigroup Inc. acted as financial adviser to Adevinta

EBay has been under pressure from activist investors Starboard Value and Elliott Management Corp. to sell assets and focus on its main online marketplace eBay.com. In 2019, the company agreed to appoint two new directors from Starboard and Elliott, which stepped up pressure to divest non-core assets. The same year Devin Wenig stepped down as CEO after balking at the sales.


EBay reported strong results in its more recent quarter thanks to a boost from Covid-spooked consumers shopping online, but the classified business suffered because the pandemic forced the shuttering of thousands of car dealerships.

San Jose-based eBay will become Adevinta’s biggest shareholder and be entitled to two seats on its board.

“I’m very happy to have eBay as a shareholder,” said Ryssdal. “If we can collaborate more with them and extend the collaboration, that’s something that I would very happily explore.” Adevinta’s expertise in the real estate sector could be applied to some of eBay’s assets, he said.

The company’s classifieds business includes separate online marketplaces such as Kijiji, which is used in Canada and Italy, and Gumtree, which is popular in the U.K., Australia and South Africa. It also owns Bilbasen, a Danish online vehicle marketplace, and British car search website Motors.co.uk.

They’ll be added to Adevinta’s portfolio, which includes shopping app Shpock, vacation reservation site Locasun and job hunting platform InfoJobs.


EBay said in February it was in active talks with multiple parties about a potential deal for its classifieds business. The San Jose, California company in November sold StubHub, an online marketplace for concert and sporting event tickets, to Switzerland-based rival Viagogo for $4 billion.