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eBay could sell StubHub in strategic review

Olivia Feld
Once a market leader, the retailer has struggled to compete with Amazon and others in recent years - REUTERS

eBay could sell its ticket resale company StubHub in a strategic review being undertaken by the company after two activist investors took seats on its board.

Representatives of the two hedge funds, Elliott Management and Starboard Value, became independent directors on company’s board on Friday after a long battle to shake up the company.

The 23-year auction site which was a pioneer in online retail has struggled in the recent years as its faced growing competition from other e-commerce sites including Amazon.

The company's share price fell approximately 25pc last year, and has slightly recovered so far this year.

Elliot disclosed a 4pc stake in the company in January and said that the company should either spin off or sell StubHub and its classified-ads business. Starboard has a 1pc interest in the company.

The San Jose, California-based company said that the review will be led by the eBay management team and overseen by its board of directors. eBay underwent a re-organisation last June that resulted in almost 300 job losses. 

eBay says it plans to announce its findings of its review at an event in the Autumn. Goldman Sachs is working as financial advisor to the company.

The company’s share price fell 4pc on the news.