EBay Closes In on Sale of Classifieds Unit
EBay (EBAY) - Get eBay Inc. Report is closing in on the sale of its classifieds unit to the tune of $8 billion, fulfilling a promise to activist shareholders to focus on its core offering of being an online marketplace.
Netherlands-based Prosus is reportedly close to buying the unit. EBay is expected to finalize the all-cash sale as soon as Friday.
The deal encompasses other online marketplaces that eBay owns, including Kijiji and Gumtree - two classified-listing services that are popular in Canada and the U.K., respectively.
EBay said in February it was in active talks with multiple suitors about a potential deal for its classifieds business as it responded to pressure from activist investors to focus more on its main online marketplace which has been struggling against competition from the likes of Amazon.com (AMZN) - Get Report.
Since that time, eBay has bolstered its offering to attract more small businesses, in turn piquing interest from investors who have flocked to e-commerce companies benefitting from consumers’ shift to online shopping amid the global pandemic.
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