Jul 23, 2020 | Mallika Rangaiah
Ebay Inc has consented to offer its classified ads business to the Norwegian classified ads publisher Adevinta in an arrangement worth $9.2 billion, making it the world's biggest classifieds group, as reported by the Economic Times.
eBay will get $2.5 billion in real money and 540 million shares of Adevinta, making it the biggest investor with a 44% stake in the organization.
The CEO of Adevinta, Rolv Erik Ryssdal states that the organization has become the biggest global online classifieds organization, with a one of a kind portfolio in driving dominant marketplace brands. The organization will showcase its presence in the markets in 20 nations, covering one billion individuals with three billion visits each month.
Ryssdal further added that the firm is convinced that the blend of the two organizations, with their integral organizations, will make one of the most interesting and convincing equity stories in the online classifieds industry.
Adevinta had been spun out of Nordic media organization Schibsted and recorded on the Oslo bourse a year back, as its shares bounced 39% on the news after trading that had been halted resumed while Schibsted shares were up 21%.
It claims ownership of brands like Leboncoin, France's greatest online classified ads site, Brazil's OLX, and various more across Europe, the Americas, and North Africa.
The eBay Classifieds Group incorporates the Gumtree and Kijiji brands and offers online promotions to over 1,000 cities across the globe. The organization reported an operating income of $83 million on revenue of $248 million in the primary quarter of 2020.
The exchange, which is required to conclude in the initial quarter of 2021, targets $150-185 million in yearly synergies in three years. It will mean Schibsted's stake in Adevinta tumbles to about 33% from 59%, the firm reported.