EBay Inc. has agreed to buy sports ticket reseller StubHub Inc. for $310 million (€238.7 million) in cash, further expanding the Internet auctioneer's electronic bazaar. Both companies confirmed Wednesday that the deal was imminent.
StubHub is a dot com company which acts as an online marketplace for buyers and sellers of tickets for sports, concerts, theater and other live entertainment events at fair market value, even for events that happen to be sold out. StubHub employs about 350 workers.
In 2006 StubHub says buyers paid more than $400 million for tickets sold on its site, generating more than $100 million in revenue. Unlike other online ticket resellers, such as Craigslist (free) and Ebay (up front price per listing), Stubhub takes a 25% commisson after the sale occurs (10% from the buyer, 15% from the seller).
StubHub's sale, expected to close before April, punctuates another improbable Internet success story.
Officials of the two companies declined to comment.
Source : Reuters
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