Norway’s Adevinta Makes Major Acquisition of eBay’s Gumtree and Classifieds Brands in a $9.2 Billion Deal
In a groundbreaking deal, eBay has made a significant move by selling its Classifieds Group, which includes popular platforms like Gumtree, to Norwegian competitor Adevinta for a staggering $9.2 billion. This cash and shares transaction consist of a substantial $2.5 billion in cash and over half a billion shares of Adevinta, positioning eBay as the principal shareholder in the Oslo-based company with a sizeable 44% ownership stake.
Gumtree, a well-established platform known for its variety of free and paid classified ads, has played a vital role in the secondhand market space, offering categories ranging from fashion to beauty. Originally founded in 2000 to cater to London’s international travelers seeking flat shares and used furniture, Gumtree was acquired by eBay in 2005, marking a significant expansion for both companies.
In addition to Gumtree, eBay’s Classifieds Group includes other noteworthy brands like Mobile.de, Marktplaats, dba, Bilbasen, Kijiji, 2dehands, 2ememain, Vivanuncios, and more. Adevinta’s acquisition of these assets is projected to bolster its presence in numerous countries, enhancing its footprint in key European markets such as the UK, Germany, France, Spain, and Italy. This strategic move is anticipated to elevate Adevinta’s revenues to an impressive $1.8 billion and pre-tax earnings to nearly $600 million, solidifying its position as an industry leader.
The decision to divest its classifieds business underscores eBay’s commitment to sharpening its strategic focus and maximizing growth opportunities within its core marketplace. Alongside the sale of Gumtree and other brands, eBay has also offloaded Stubhub to Viagogo in a deal exceeding $4 billion, although regulatory approvals are pending. Despite these divestitures, the classifieds sector shows promising growth potential, particularly in the wake of the digital marketplace boom spurred by the global pandemic.
The sale of Gumtree and its affiliated brands signals a pivotal shift for eBay as it positions itself for future success in the competitive e-commerce landscape. By consolidating its operations and honing its focus on its core marketplace offerings, eBay aims to drive sustainable growth and strengthen its market position despite the rapidly evolving digital landscape.
Learn more about Adevinta’s acquisition of eBay’s Gumtree and Classifieds brands on Reuters and Bloomberg.
