US online marketplace, eBay is in advanced talks to sell its classified-ads unit to Adevinta as the online auction pioneer seeks to refocus on its core business, the Wall Street Journal has reported .
- Ebay is in talks to sell its classifieds business unit to Norwegian group, Adevinta
- The business unit includes well known international brands such as Gumtree and Kijiji
- The deal is said to be cash and stocks, although a price has not been disclosed
The price of the cash-and-stock deal was not disclosed, but the eBay unit is expected to sell for roughly $8 billion or more and the agreement could be announced as soon as Monday, WSJ said, citing people that are familiar with the matter.
Demand for online market places has surged during the coronavirus pandemic as consumers have turned to online shopping due to the prolonged lockdown and social distancing measures in place in most countries.
Ebay’s classified business includes brands such as Gumtree and Kijiji and offers online ads to more than 1,000 cities around the world.
The unit posted an operating income of $83 million and revenue of $248 million in the first quarter of 2020.
Last week we reported that the US e-commerce giant had offers submitted by online retailer Prosus, a private equity consortium and Norwegian group Adevinta.
EBay and Adevinta did not immediately respond to a Reuters request for comment.
Via our content partners at Thomson Reuters. Reporting by Radhika Anilkumar in Bengaluru. Editing by Sherry Jacob-Phillips.