Category: EBAY

• eBay Inc. (Nasdaq: EBAY) announced it is buying 3PM Shield. These are the details.

eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of sellers and buyers around the world, and 3PM Shield LLC, a provider of advanced AI-based marketplace compliance solutions, announced that eBay has acquired 3PM Shield.

This deal further enhances eBay’s world-class monitoring solutions with new technologies designed to prevent the sale of counterfeit items, unsafe products, and illegal goods. Bringing 3PM Shield to eBay is part of eBay’s ongoing commitment to provide sellers and buyers with a safe and trusted platform enabled by technology. And 3PM Shield enhances eBay’s ability to address suspicious or harmful seller behavior and potentially problematic items.

KEY QUOTES:

“It is a top priority to help ensure that eBay remains a safe and trusted environment for our global community of sellers and buyers, particularly to prevent counterfeits and unsafe or illegal products. 3PM Shield has been a valued and effective external partner in helping eBay tackle these challenges and we look forward to unlocking additional capabilities as we bring their technologies in-house.”

— Zhi Zhou, Chief Risk Officer at eBay

“3PM Shield was founded to provide next-generation eCommerce monitoring to protect trust in the buyer and seller relationship. We’re proud to partner with eBay, and I am excited that eBay’s investment will help us accelerate the impact of our cutting edge technology to combat counterfeits, unsafe products and illegal items.”

— Robert Dunkel, founder and CEO, 3PM Shield

Shares of eBay were edging down early on Wednesday after the e-commerce marketplace firm said it would cut around 4% of its workforce. 

The company (ticker: EBAY) is cutting about 500 jobs, it said Tuesday in a regulatory filing after the close of trading. The company said the move was driven by the macroeconomic situation and its focus on select categories, which are growing quicker than the rest of its business. 

• The shares of eBay Inc (NASDAQ: EBAY) have received a price target of $85 from Benchmark. These are the details.

The shares of eBay Inc (NASDAQ: EBAY) have received a price target of $85 from Benchmark. And Benchmark analyst Daniel Kurnos is maintaining a “Buy” rating on the company shares.

The price target had been raised from $79 following the company’s second-quarter results, which surpassed guidance and consensus expectations. Going forward, Kurnos is expecting declining active buyer growth over the next few quarters and a potential decline in GMV next year.

These are the highlights from eBay’s second quarter:

– eBay Korea business reported as discontinued operations

– Revenue of $2.7 billion – up 14% on an as-reported basis and up 11% on an FX-Neutral basis

– Gross Merchandise Volume of $22.1 billion, down 7% on an as-reported basis and down 11% on an FX-Neutral basis

– GAAP and Non-GAAP EPS per diluted share of $0.43 and $0.99, respectively, on a continuing operations basis

– GAAP and Non-GAAP operating margin of 27.4% and 32.8%, respectively

– Returned $1.6 billion to shareholders in the second quarter, including $1.5 billion of share repurchases and $121 million paid in cash dividends

– Announced an agreement to sell 80.01% of eBay Korea business to Emart for approximately $3 billion

– Completed the sale of the Classifieds business to Adevinta on June 24th for $13.3 billion, including $2.5 billion in cash and approximately 540 million shares of Adevinta stock (44% ownership)

– Entered into an agreement to sell approximately 135 million shares of eBay’s Adevinta stock to Permira for over $2.4 billion, reducing our ownership of Adevinta to 33%

– Board of Directors expands share repurchase authorization by an additional $3 billion

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

eBay (NASDAQ:EBAY) isn’t growing like it was in the early days of the pandemic. The online marketplace just posted some of its weakest sales metrics since 2019 as the stampede toward e-commerce slows. Its pool of active buyers shrank, and eBay handled lower volume than it did a year ago.

Still, its second-quarter results contained mostly good news for shareholders, including booming cash flow and encouraging growth in new business lines like advertising and payments processing. Let’s look at a few of the standout numbers from eBay’s second quarter.

Image source: Getty Images.

1. Buyer pool: 159 million

One of eBay’s core growth metrics, its pool of active buyers, shrank 2% year over year to mark a sharp turnaround compared to the previous quarter. That figure was not only solidly positive through the past year but had accelerated in each of the last four quarters (rising from 1% in early 2020 to 8% at the start of 2021). The slump was reflected in falling gross merchandise volume (GMV), which fell 11% compared to a better-than-20% rise in each of the last four quarters.

2. Revenue: Up 11%

Management wasn’t surprised by the GMV pullback, and growth in the core business is still impressive compared to 2019. Meanwhile, eBay is getting a big boost from its advertising and digital payments offerings, which helped overall revenue rise 11% despite declining volume.

Executives had predicted between 8% and 10% growth on that metric back in May. “On an apples-to-apples basis,” CEO Jamie Iannone said in a press release, “all key business metrics met or exceeded expectations.”

3. Transaction fees: 11.3%

eBay’s financial metrics were noisy due to the portfolio transformation project that’s produced several major divestments since 2019. Strip out those temporary impacts, and the news is all good. eBay’s operating expenses fell as a percentage of revenue, free cash flow improved to 34% of revenue, and its transaction income — the fees it charges sellers to use the platform — rose to 11.3% of the top line compared to roughly 9% before the pandemic struck.

4. Cash returns: $1.6 billion

Management took advantage of the gushing cash flow and extra funds from the sale of its classifieds business. Stock-buyback spending jumped to $1.5 billion, up from less than $40 million in the prior-year period. Executives say they intend to deliver “meaningful returns” to shareholders from buybacks and dividends, and these latest figures back up that promise. “We are simplifying our portfolio,” Iannone said, “and growing our core while delivering significant shareholder value.”

5. The Q3 outlook: 6% to 8% organic growth

eBay called for another growth slowdown as organic revenue growth decelerates to between 6% and 8% in the third quarter (down from 11% this past quarter and 38% at the start of the year). Investors should be happy with that outlook, since it implies a soft landing from the volume spike in 2020.

There are many reasons to expect higher annual earnings from here too. Three of the biggest reasons include eBay’s new business lines, its double-digit transaction fees, and its aggressive share repurchase activity. These factors should amplify shareholders’ returns from holding this growth stock over the long term.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

South Korean retail giant Shinsegae, led by a daughter of Samsung’s founder, has agreed to acquire eBay’s Korean business for $3 billion in a move to win market share in the country’s increasingly competitive e-commerce market.

Shinsegae’s supermarket affiliate, E-Mart, will acquire 80% of eBay Korea, the U.S. e-commerce site said in a statement last week. The deal allows eBay Korea and E-Mart to set up an ecosystem that sells everything from groceries to general merchandise, the statement said. The deal will also enhance E-Mart’s same-day delivery capability and improve the use of capacity at its warehouses for goods to be shipped by e-commerce.

Shinsegae is making its move as Korean e-commerce revenues rise. According to research firm Counterpoint, Korea’s e-commerce market has expanded 250% since 2016. A surge in online shopping during the Covid-19 pandemic grew e-commerce revenues globally. The top e-commerce companies in Korea, by market share, are internet giant Naver (16.5%), Coupang (13%) and eBay (12.4%), according to Counterpoint.

“eBay Korea is the third-largest e-commerce firm in the South Korean market, so the acquisition will immediately propel Shinsegae Group into a leading e-commerce market leader in South Korea,” says Rajiv Biswas, Asia-Pacific chief economist with research firm IHS Markit.

Naver leads because of the age and depth of its mass market internet services that smoothed its way into e-commerce, says Mijung Kang, manager at Counterpoint. Coupang gained ground in March with a $4.6 billion initial public offering in New York, the biggest U.S. listing of any Asian company since Alibaba’s 2014 IPO.

Shinsegae intends to cooperate with Naver and will invest more than $650 million over the next four years in a fulfillment service center, says Dongkeun Yi, an analyst at Counterpoint. The retail giant is led by chairwoman Lee Myung-hee, the youngest daughter of late Samsung Group founder Lee Byung-chull. Lee Myung-hee’s son, billionaire Chung Yong-jin, is vice chair of the company.

Shinsegae also stands out for its own cold chain, says Nyunsoo Na, an analyst with research firm IDC, referring to the temperature-controlled storage and shipping of products. “Based on their own offline channel and infrastructure, it seems that the company has a priority in (cold chain),” Na says. “With eBay Korea IT engineers and members, they will be able to expand their cold chain sales.”

SAN JOSE, Calif., June 25, 2021 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today announced that it has completed the transfer of its Classifieds business to Adevinta in exchange for $2.5 billion in cash and a 44% equity stake in Adevinta, equivalent to approximately 540 million shares.

“We are pleased to finalize the deal between Adevinta and eBay Classifieds, where the combination of these two companies will create a leading global online classifieds business,” said Jamie Iannone, Chief Executive Officer, eBay. “By joining Adevinta, the eBay Classifieds’ business has an enormous opportunity ahead. We are optimistic that the breadth of talent and collective experience across the combined portfolio will offer additional value for our customers, employees and shareholders.” 

The completion of this transaction results in after tax net cash proceeds of approximately $2 billion. With this transfer complete, the Company is updating its capital allocation plans for 2021 by increasing its estimated share buyback from $2.0 billion to $5.0 billion.

The Company has agreed to reduce its ownership stake in Adevinta to 33% or less over the next 18 months, as part of remedies it proposed to resolve the competition concerns raised by the Austrian regulatory authorities. Proceeds from this reduction will be deployed in a manner consistent with eBay’s capital allocation tenets and targets.  

Please reference the 8-K eBay filed today for further information.

About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects millions of buyers and sellers in 190 markets around the world. We exist to enable economic opportunity for individuals, entrepreneurs, businesses and organizations of all sizes. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2020, eBay enabled $100 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

About Adevinta
Adevinta is a global online classifieds specialist, operating digital marketplaces in 16 countries. The company provides technology-based services to connect buyers with sellers and to facilitate transactions, from job offers to real estate, cars, consumer goods and more.

Adevinta’s portfolio spans more than 40 digital brands, covering one billion people and attracting approximately three billion average monthly visits. Leading brands include top-ranked leboncoin in France, Germany’s leading classifieds sites mobile.de and eBay Kleinanzeigen, Marktplaats in the Netherlands, Kijiji in Canada, fotocasa and InfoJobs in Spain, and 50% of fast-growing OLX Brasil. Adevinta spun off from Schibsted ASA and publicly listed in Oslo, Norway in 2019. Adevinta employs 6,300 people committed to supporting users and customers daily. Find out more at Adevinta.com.

Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding the potential benefits of the transaction with Adevinta ASA (the “Transaction”), the impact of the Transaction on future results, the Company’s stock buyback activity and plans to reduce the Company’s stake in Adevinta. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to: changes in political, business and economic conditions, the duration of the COVID-19 pandemic and the effects of COVID-19 on our business and operations and on the general economy, including effects on our sellers and customers, any regional or general economic downturn or crisis and any conditions that affect e-commerce growth or cross-border trade; the company’s ability to realize expected growth opportunities in payments intermediation and advertising; fluctuations in foreign currency exchange rates; the company’s need to successfully react to the increasing importance of mobile commerce and the increasing social aspect of commerce; an increasingly competitive environment for its business; changes to the company’s capital allocation, including the timing, declaration, amount and payment of any future dividends or levels of the company’s share repurchases, or management of operating cash; the company’s ability to increase operating efficiency to drive margin improvements and enable reinvestments; the company’s ability to manage its indebtedness, including managing exposure to interest rates and maintaining its credit ratings; the company’s need to manage a large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; the ability to successfully intermediate payments on our marketplace platform; the company’s need and ability to manage regulatory, tax, data security and litigation risks; the company’s ability to timely upgrade and develop its technology systems, infrastructure and customer service capabilities at reasonable cost while maintaining site stability and performance and adding new products and features; the company’s ability to integrate, manage and grow businesses that have been acquired or may be acquired in the future; the possibility that eBay may not fully realize the projected benefits of the Transaction; and the reaction of customers and other persons to the Transaction.

The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.

More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.

SOURCE eBay Inc.

Related Links

http://www.ebay.com

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• Creation of a globally scaled, pure-play online classifieds leader with a diversified and complementary portfolio of assets and brands
• Adevinta now has #1 market positions in 16 countries

Oslo, 25 June 2021 – Adevinta ASA (ADE) (“Adevinta” or the “Company”) today announces that it has completed its acquisition of eBay Classifieds Group (“eCG”), the classifieds arm of eBay Inc. (“eBay”). The transaction creates a globally scaled, pure-play online classifieds leader, which covers a population of one billion people and receives around three billion monthly visits. The transaction was first announced on 21 July 2020.

Adevinta now benefits from a highly diversified portfolio of classifieds platforms across geographies and verticals, notably in Germany, France, the Netherlands, Spain, Canada and Brazil. This increased scale will allow Adevinta to accelerate innovation in products and services to deliver more value to its users and customers and to take advantage of the ongoing consolidation in the global online classifieds industry. 

Rolv Erik Ryssdal, CEO of Adevinta, said: “This is a game-changing transaction for Adevinta, making us the world’s leading online classifieds group with leading market positions in 16 countries. Adevinta has unparalleled scale in technology and talent that will allow us to build world-class products to create value for consumers and advertisers in a rapidly changing environment. 

“We are excited to welcome our new colleagues from eCG to Adevinta today. We are confident our close cultural fit will enable a smooth transition for our colleagues, customers and other partners. We are also pleased to have eBay as a strategic shareholder in the Company and are optimistic about the future growth prospects of the combined business.” 

Orla Noonan, Chair of the Adevinta Board, commented: “In a sector where consumer trends and technology are constantly advancing, today’s acquisition not only marks a new chapter for Adevinta, but also for the entire global online classifieds industry. 

“This combination will give Adevinta a clear lead in accelerating innovative products and services, creating best-in-class integrated solutions that will enhance users’ and customers’ digital experience, which in turn will create long-term value for all our stakeholders.” 

The new Adevinta Executive team will continue to be led by current Chief Executive Officer Rolv Erik Ryssdal, and will comprise of the following team members:

• Uvashni Raman – Chief Financial Officer
• Brent Mclean – Chief Product & Technology Officer
• Nicki Dexter – Chief People & Communications Officer
• Antoine Jouteau – CEO, Adevinta France
• Malte Krüger – CEO, Mobile.de
• Gianpaolo Santorsola – EVP, European Markets 
• Zac Candelario – EVP, International Markets

The transaction creates a company with pro forma 2019 annual revenue of c. EUR 1.6 billion.  Adevinta will begin integrating eCG business operations and anticipates run-rate cost synergies of EUR 130-165 million at the end of a three year period, based on the current portfolio.

As part of the consideration for the acquisition of eCG, the Company will issue to certain of eBay’s subsidiaries (i) 342,474,251 ordinary shares (“Class A Shares”) representing approximately 33.3% of the Class A Shares and associated voting rights in the Company, and (ii) 197,520,228 shares of a new class of non-voting shares (“Class B Shares”), which,  together with the Class A Shares issued to eBay, amounts to approximately 44% of the Company’s total outstanding share capital. All shares in the Company in issue prior to completion of the transaction will be renamed Class A Shares in the Company’s updated Articles of Association effective from completion of the transaction.

Effective from the time the share capital increase pertaining to the consideration shares to eBay has been registered in the Norwegian Registry of Business Enterprises, the Company’s Articles of Association are amended in accordance with the amendments approved at the Company’s extraordinary general meeting on 29 October 2020. The amended Articles of Association will be available on the Company’s website at Adevinta.com/articles of association.

It is expected that the share capital increase pertaining to the issuance of the consideration shares will be registered in the Norwegian Register of Business Enterprises by 28 June 2021. Following completion of the transaction, the total share capital of the Company will be NOK 244,988,596.20 divided into 1,027,422,753 Class A Shares and 197,520,228 Class B Shares, totaling 1,224,942,981 shares, each with a nominal value of NOK 0.20. The Class A Shares will represent NOK 205,484,550.60 and the Class B Shares will represent NOK 39,504,045.60 of the total share capital. Both the Class A Shares and Class B Shares of the Company will be registered in Euronext VPS. The Class B Shares will not be listed, but will be exchangeable into Class A Shares on a one-for-one basis on the terms and conditions set out in the amended Articles of Association. 

Further details on the transaction can also be found in the prospectus dated 23 December 2020, issued by the Company in connection with the listing on the Oslo Stock Exchange of the new Class A Shares issued in the transaction, which is available on the Company’s website at Adevinta.com/prospectus.

As a result of the transaction, Schibsted’s percentage ownership of Class A Shares will be approximately 39%, equaling approximately 33% of the Company’s total outstanding share capital.

In order to fund the USD 2.5 billion cash consideration to eBay and refinance existing debt, Adevinta has acceded to the Senior Secured Notes (EUR 1.06 billion) and Term Loan B (EUR 900 million and USD 506 million) raised in Q4 2020. eCG cash on balance sheet at closing and transaction expenses will be financed with a drawdown of EUR 150 million from the new EUR 450 million Revolving Credit Facility.

Pursuant to Article 6 of the Company’s amended Articles of Association, eBay has informed the Company that they intend to appoint Marie Oh Huber and Mark Solomons from eBay to the Adevinta board, and Schibsted has informed the Company that they intend to appoint Aleksander Rosinski and Kristin Skogen Lund to the board. Consequently, Kristin Skogen Lund has informed the Company that she has withdrawn her candidacy as a shareholder elected member to the Adevinta board at the upcoming annual general meeting on 29 June 2021, and that from the same time she will continue on the Adevinta board as a board member appointed by Schibsted pursuant to Article 6 of the amended Articles of Association.

In addition, the sale of eBay Classifieds Group’s Denmark businesses to a subsidiary of Schibsted has also been completed at approximately EUR 278 million, as further described in the prospectus dated 23 December 2020. Reference is also made to the statement from the Company’s Board in this respect, available on the Company’s website at Adevinta.com/news.

Adevinta completed the sale of Shpock to Russmedia Equity Partners on 2 June 2021, in line with the undertakings proposed to and approved by the UK Competition and Markets Authority. In addition, Adevinta will pursue and finalize the sale of Gumtree UK and Motors.co.uk as part of these undertakings over the course of the second half of 2021. The divestitures will comply with all applicable social processes and consultations with employee representatives’ bodies.

In addition, Adevinta and eBay have provided certain remedies to the Austrian Federal Competition Authorities, whereby (i) eBay has agreed to reduce its financial interest in Adevinta to no more than 33% within 18 months following closing of the transaction, so as to reduce its indirect economic interest in Willhaben, and (ii) Adevinta has agreed to prevent the flow of information about Willhaben to eBay, as well as to restrict eBay’s potential influence over the strategic operations of Willhaben.

-End-

Notes to Editor

Media contacts

Adevinta
Mélodie Laroche
Corporate Communications
+33 (0) 6 84 30 52 76
melodie.laroche@adevinta.com

Jasper Teijsse
Senior Director of Global Communications, eCG
T: +31 6 53462977 
jteijsse@eclassifiedsgroup.com

Marie de Scorbiac / Anne-Sophie Jugean
Investor Relations
ir@adevinta.com

John Kiely / Latika Shah / Raeesa Chowdhury-King
Edelman Smithfield
+44 (0)7785 275665 / +44 (0)7950 671 948 / +44 (0)7885 802774
adevinta@edelman.com

Schibsted
Atle Lessum
Director, Schibsted Group Communications
+47 415 05 645
atle.lessum@schibsted.com

Malin Langtvet
Investor Relations Officer
+47 916 86 710
ir@schibsted.com

eBay 
Joe Billante 
ir@ebay.com

Trina Somera 
press@ebay.com

About Adevinta
Adevinta is a global online classifieds specialist, operating digital marketplaces in 16 countries. The company provides technology-based services to connect buyers with sellers and to facilitate transactions, from job offers to real estate, cars, consumer goods and more. 

Adevinta’s portfolio spans more than 40 digital brands, covering one billion people and attracting approximately three billion average monthly visits. Leading brands include top-ranked leboncoin in France, Germany’s leading classifieds sites mobile.de and eBay Kleinanzeigen, Marktplaats in the Netherlands, Kijiji in Canada, fotocasa and InfoJobs in Spain, and 50% of fast-growing OLX Brasil. Adevinta spun off from Schibsted ASA and publicly listed in Oslo, Norway in 2019. Adevinta employs 6,300 people committed to supporting users and customers daily. Find out more at Adevinta.com.

About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects millions of buyers and sellers in 190 markets around the world. We exist to enable economic opportunity for individuals, entrepreneurs, businesses and organizations of all sizes. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2020, eBay enabled $100 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

About Schibsted
Every day, Schibsted helps millions of people buy, sell, hire and get hired. The company’s
mission is to create perfect matches through our trusted marketplaces and innovative
solutions. With Blocket in Sweden, Finn in Norway and Tori and Oikotie in Finland, Schibsted
meets consumer needs with leading marketplaces. Schibsted wants to help people make
better deals, while partnering with companies to help them make the most of their
businesses. Schibsted has the mind of a start-up and the heart of an established company
that has stood on its own feet since 1839. The company owns a family of international
consumer brands with over 5,000 employees.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act