EBay on Monday announced plans to sell StubHub to Swiss ticket vendor Viagogo for about $4.05 billion in cash.
The sale is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.
Ebay was up more than 5% in premarket trading on the news.
The company believes the move sill maximize long-term value for eBay shareholders, interim chief executive officer of eBay Scott Schenkel said in a release.
“Over the past several months, eBay’s leadership team and Board of Directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub,” he said.
When combined, StubHub and Viagogo will sell tickets across more than 70 countries, “giving fans seamless access to a wider selection of inventory around the world, while sellers, teams and artists will have the ability to more effectively reach a broader global audience,” the release said.
Viagogo’s founder and CEO Eric Baker co-founded StubHub while in business school. He left before StubHub was sold to eBay for $310 million in 2007, according to the release.
“It has long been my wish to unite the two companies,” Baker said.
CNBC reached out to eBay, Viagogo and StubHub for further comment but has not immediately received a response.
The Wall Street Journal was the first to report this news on Monday.