eBay Supports Voluntary Offer To Acquire Adevinta; eBay Would Receive $2.2B Cash And Retain A 20% Ownership Stake
Portfolio Pulse from Benzinga Newsdesk
eBay Inc. (NASDAQ:EBAY) has expressed support for a voluntary tender offer by Permira and Blackstone to acquire Adevinta, with eBay set to receive $2.2 billion in cash and retain a 20% stake in Adevinta. The transaction values eBay's total stake at approximately $4.3 billion, a significant premium over the pre-speculation value. eBay plans to use the cash for general corporate purposes and continue its commitment to return 125% of free cash flow to shareholders. The deal is expected to close in Q2 2024, subject to regulatory approvals and other conditions.
November 21, 2023 | 4:50 pm
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Blackstone, along with Permira, is leading the voluntary tender offer to acquire Adevinta, with eBay set to receive $2.2 billion in cash and retain a 20% stake in the privatized Adevinta.
Blackstone's role in the acquisition is significant, but the direct short-term impact on its stock price may be neutral as the transaction is part of a larger investment strategy and the immediate financial implications for Blackstone are not detailed.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
eBay supports the acquisition of Adevinta by Permira and Blackstone, agreeing to sell 50% of its stake for $2.2 billion and retain a 20% ownership. The deal values eBay's stake at a premium and is expected to close in Q2 2024.
The transaction is likely to be viewed positively by investors as eBay is realizing immediate cash value from the sale at a premium, while still maintaining a significant stake in Adevinta. This could lead to a short-term positive impact on eBay's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100