eBay is undertaking a strategic review of its classifieds business
German online classifieds company Scout24 is interested in buying parts of eBay’s (EBAY) classifieds business, its CEO, Tobias Hartmann, told Reuters recently. Scout24 is specifically eyeing eBay’s auto and real estate classifieds operations. eBay’s mobile.de is the leading car classifieds website in Germany.
In March, eBay announced that it had initiated a strategic review of its ticketing and classifieds businesses. Although the review may result in eBay selling these businesses, the company was quick to point out that it couldn’t assure investors that there would be a sale at the end of the day. eBay also said it wouldn’t make announcements about the progress of its strategic review until its board had approved a course of action that required public disclosure.
Classifieds is a tiny piece of eBay’s overall business
eBay’s classified business generated $256 million in revenue in the first quarter and contributed ~10% of the company’s total revenue, which rose 2.0% YoY (year-over-year) to $2.6 billion. Alibaba (BABA), Shopify (SHOP), and Etsy (ETSY) recorded revenue growth of 51%, 50%, and 40% YoY, respectively, in the first quarter. Revenue rose 17% YoY at Amazon (AMZN) in the first quarter.
eBay announced the strategic review of its ticketing and classifieds businesses after activist investor Elliott Management urged it to consider dropping some of its operations to focus on building its core marketplace business. eBay derives most of its revenue from the marketplace business.