According to foreign media, e-commerce giant eBay may face restructuring again. According to sources, hedge fund Elliott Management believes that if eBay divests StubHub and eBay Classifieds Group, companies such as Wal-Mart, Google or private equity firms may be interested in acquiring its mall business.
Another person familiar with the matter said that Elliott Management disclosed in a letter on Tuesday that it held more than 4% of eBay’s stock and proposed eBay restructuring proposals, including divesting StubHub and classified advertising assets. Another hedge fund, Starboard Value LP, which owns eBay shares, also plans to make a similar restructuring proposal to eBay.
The market value of eBay is over $31 billion. In the third quarter of last year, eBay’s business revenue was $2.1 billion, and StubHub and classified advertising businesses generated revenues of $291 million and $254 million, respectively. Elliott Management expects eBay classified advertising to be worth between $8 billion and $12 billion, and StubHub worth $3.5 billion to $4.5 billion. A source said that if the mall business is sold, Elliott Management expects eBay to credit about $15 billion.
Google and Wal-Mart did not comment on this. In a statement, eBay responded that the company is grateful to Elliott Management for its recognition of the company’s business advantage and will carefully evaluate its proposal.
If Elliott Management’s plan is implemented, if Wal-Mart does intend to acquire eBay’s e-commerce business, then the world e-commerce industry landscape will be rewritten, and the current cross-border e-commerce platform rankings will also be disrupted.
Today, Amazon has dwarfed all of its online shopping rivals in the US, including eBay. Below is an estimated 2018 US e-commerce sales share:
Although it outperforms all traditional retailers, eBay is really a big drop by Amazon. As one of the earliest and most successful companies in the Internet, it is a pity.
In contrast to the current state of Amazon and eBay, some media believe that eBay is still one of the most popular options for fast listing and sales. Given its auction attributes, sellers are often able to obtain funds that are higher than the actual value of the item. Users also have more creative space when designing product pages. For those who have just started in the e-commerce industry, eBay is an ideal product sales platform.