eBay Ditches Classified Business for $2.2 Billion Cash and Equity Deal

In a strategic move, eBay is parting ways with its remaining shares in Adevinta, the online classified business, in a deal valued at $2.2 billion in cash and 20% equity. This transaction with private equity firms Permira and Blackstone marks another step in eBay's shift away from certain business segments. The move is set to close in the second quarter of 2024, subject to regulatory approval.

As eBay divests from its classifieds venture, the company is taking a bold stance to reshape its focus. The cash injection of $2.2 billion will fuel eBay's overarching corporate goals, reinforcing its commitment to shareholders by returning 125% of cumulative free cash flow over the next three years through a combination of repurchases and dividends.

This divestiture follows eBay's trend of shedding business units that no longer align with its evolving strategy. The online marketplace giant, having previously sold parts of its operations, including classifieds and PayPal, continues to refine its business model. The move reflects eBay's determination to concentrate on its core strengths and adapt to the ever-evolving landscape of e-commerce.