eBay buys online ticketing site Ticketbis for $165 million

eBay announced today that it has acquired Ticketbis, a Bilbao, Spain-based online ticketing site. The two parties did not disclose the detailed terms of the acquisition, but according to people familiar with the matter, the purchase price was US$165 million. The acquisition transaction is expected to be completed in mid-2016.

eBay announced today that it has acquired Ticketbis, a Bilbao, Spain-based online ticketing site. The two parties did not disclose the detailed terms of the acquisition, but according to people familiar with the matter, the purchase price was US$165 million. The acquisition transaction is expected to be completed in mid-2016.

Why did EBay choose to acquire Ticketbis? This is mainly to further expand the service scope of his online ticketing website StubHub. StubHub's current main service scope is in the United States, and the acquisition of Ticketbis will help expand StubHub's service scope to Europe, Latin America and Asia Pacific.

For Ticketbis, the $165 million purchase price is decent. Prior to the acquisition, Ticketbis had raised no more than $26 million in total funding, with investors including Fabrice Grinda, Active Venture Partners and Jose Marin. In 2015, Ticketbis achieved revenue of US$25 million, and the company expects revenue to reach US$45 million this year. Ticketbis currently has approximately 400 employees worldwide.

What did both parties say about this acquisition transaction? Scott Cutler, chairman of StubHub, said:

"We live in a world where the most precious moments in our lives are not so much what we have as experiences we can share. The acquisition of Ticketbis allows us to connect millions of people with exciting activities. After the acquisition is completed, Stub Hub will be able to provide more interesting activities to more fans and people who like to participate in events around the world, allowing them to find new ways to enrich their lives."

Ander Michelena, co-founder and co-CEO of Ticketbis, said:

"Stub Hub's vast assets can add tremendous value to ticket buyers and sellers around the world, especially as we continue to expand into emerging markets. After the acquisition, the common market formed by StubHub and Ticketbis will bring huge value and opportunities to event fans around the world, allowing them to experience their favorite activities anytime and anywhere. We are excited to be part of the eBay family, and as part of the StubHub brand, we look forward to continuing to innovate in the ticketing market."

In fact, StubHub itself was acquired by eBay. In 2007, eBay bought StubHub for $310 million. Currently, StubHub's revenue only accounts for a small portion of eBay's huge business, but its business has been growing steadily. In the first quarter of 2016, eBay's total merchandise transaction volume (GMV) was US$20.5 billion, most of which came from the eBay.com website, of which StubHub only contributed US$869 million in total merchandise transaction volume. StubHub's revenue in the first quarter was $177 million, a 34% increase from the same period last year.

Editor: vian