US e-commerce giant eBay has sold its classified-ads business to Norwegian competitor Adevinta in a $9.2 billion deal. The deal includes the sale of recognized brands such as Gumtree, Kijiji, and DBA. It will make Adevinta the world's leading online classified group, with a market presence in 20 countries. California-based eBay will receive $2.5 billion in cash and a 44% stake in the Oslo-based group. Visit Business Insider's homepage for more stories.
Online marketplace eBay announced the sale of its classified-ads group on Tuesday to Norwegian peer Adevinta in a deal worth $9.2 billion. The acquisition — which gives Adevinta control of brands such as Gumtree, Kijiji, Autotrader, DBA, and Marktplaats — makes the Norwegian firm the world's largest online classifieds group. It now has access to markets in 20 countries covering 1 billion people, with 3 billion monthly visits. The assets are centred around Germany, France, and Spain, Adevinta said in a statement. As part of the deal, eBay will become the Oslo-based group's largest shareholder. It will receive 44% stake in the company and 33.3% of voting rights. It will also receive $2.5 billion in cash. "With the acquisition of eBay Classifieds Group, Adevinta becomes the largest online classifieds company globally, with a unique portfolio of leading marketplace brands," Adevinta CEO, Rolv Erik Ryssdal, said in a statement. Reports of the ad publisher's interest in eBay's business emerged last week, but at a lower valuation of around $8 billion. California-based eBay's transfer of its ad business follows a push from activist investors Elliott Management and Starboard Value to prioritize the company's core online auction site, The Times reported. In November, eBay offloaded its online ticket resale subsidiary, StubHub, to rival marketplace Viagogo for $4 billion. The sale still faces regulator scrutiny.SEE ALSO: Ecommerce sales will decelerate this year globally but there may be success in certain national markets Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid