eBay Acquires StubHub for $310 Million

In late breaking news, eBay announced this week they will acquire the leading Internet ticket seller, StubHub.

This is one acquisition that really makes sense for eBay. eBay’s tickets category is huge and essentially eBay acquired their major competitor. Selling tickets is one of the easiest ways to make money on eBay if you have a good source. (I don’t –so please don’t email me asking how and where to get tickets.  But see below for one idea)

eBay sellers have been making money selling concert and sport tickets for the past few years, but StubHub really grabbed a big piece of the market with their aggressive radio advertising campaign.

StubHub offers sellers the following benefits:

  • Access to millions of fans eager to buy tickets
  • Set your asking price, change it anytime you want
  • Unlike eBay you can list tickets for FREE! Only pay a commission when your tickets sell
  • No handling buyer inquiries, StubHub does it for you
  • You ship your tickets to buyers with their fast and easy process. StubHub provides sellers with a pre-paid, pre-addressed FedEx label. Print it out and ship your tickets to the buyer.

As I said at the start, this is a really good fit with eBay.  Wall Street seems to agree. eBay Stock was up over 3% on the news.  Bear Stearns analyst Robert S. Peck thinks the eBay-StubHub combination will become a "formidable competitor" to Ticketmaster, which operates ticket auction TicketExchange.

It is not clear how and if eBay will integrate StubHub –or, if they will start charging StubHub sellers fees like they do on eBay.

One of my sons occasionally makes money selling tickets. He buys just enough tickets from Ticketmaster, that he often gets offers of early sales for concert groups.  He is smart enough to know which ones will sell out fast.  He will typically buy 4 or 6 tickets, keep two and sell the rest. Interestingly though he eschews eBay and StubHub for Craigs List.  This way he gets a local buyer who will usually meet him and pay cash. He never has trouble selling the tickets for anywhere from 50% to 100% profit.

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