SoFi is committed to fighting racism, standing in solidarity with all of our communities, providing space for open dialogue,
as well as taking action as informed allies. We are donating $1 million to organizations that empower people of color and their allies.

dollar signs

EBay Sheds its Classified-Ads Business



Streamlining Operations


EBay (EBAY) has made a deal to sell its classified-ads business to Adevinta ASA, (ADE:NO), an Oslo, Norway-based company. Adevinta will pay eBay with $2.5 billion in cash and about 540 million shares of Adevinta stock.

EBay has been looking for a buyer for its classified-ads arm since February. Investors have been urging eBay to sell this part of its operations for some time so the company can concentrate on its core business.

EBay used to own PayPal (PYPL) and StubHub, but sold them due to similar investor concerns about the company focusing on its online auction operations. Last year, eBay’s classifieds business generated $1.1 billion in revenue in comparison to its auction business’ $7.6 billion.

Adevinta Expands its Presence


Ebay’s classified-ad unit, which is similar to Craigslist, is mainly active in Canada, Mexico, Africa, Australia, and parts of Europe. Adevinta currently runs digital marketplaces in 15 countries, so acquiring eBay’s operations will help it expand its reach—especially in Germany, one of the largest economies in Europe.

The new, combined company will have a significant presence in 20 countries, and it is estimated that its annual revenue will be $1.8 billion. Adevinta’s stock rose 36% on news of the acquisition.

EBay Works to Stay Competitive


Now that eBay has plans to shed its classified-ad operations, it is focusing on keeping its core business competitive. Ebay was a pioneer in the ecommerce sphere, but it has had difficulty keeping up with the likes of Amazon (AMZN).

Elliott Management Corp. and Starboard Value LP, activist investors in eBay, have been pushing the company to make big changes in order to remain an important ecommerce player, and to get its share prices up. In April, eBay appointed Jamie Iannone as its CEO, who was formerly the COO of Walmart’s (WAL) ecommerce division. Investors are hopeful that with new leadership and a streamlined structure, eBay will be able to stay an important part of the online shopping landscape.


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS072202


ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.


TLS 1.2 Encrypted
Equal Housing Lender