Ebay shares jump 2.4% as it raises buyback plan by $3 billion
Ebay has expanded its share buyback plan by $3 billion (£2.3 billion) while raising its outlook for current quarter as it closed its sale of StubHub.
StubHub’s sale to rival ticket platform Viagogo for $4.05 billion (£3.15 billion) has now been completed, marking an end to months of pressure on Ebay to offload the business.
This has in turn led Ebay to raise its forecast for both its current quarter and the full year, sending its shares rising 2.4 per cent.
For the first quarter Ebay said it now expects adjusted profits of between 72 cents and 75 cents per share, above analysts estimates of 72 cents.
The online marketplace has also risen its expectations for the full year to between $3.00 and $3.10 per share.
READ MORE: Ebay sells StubHub to Viagogo for $4bn
This fresh optimism reflected plans to significantly increase its share buyback scheme by $3 billion to $4.5 billion in total.
Activist investors Elliott Management and Starboard Value, which purchased a stake in Ebay and introduced members to its board earlier this year, have been piling pressure on the company to offload StubHub and its classified business Gumtree for months.
In March Ebay conceded and launched an in-depth strategic review of its business, a move which caused rifts in its boardroom.
This culminated in the shock departure of its chief executive David Wenig in September, who said it was clear he was “not on the same page as my new board”.