Internet auctioneer eBay Inc. is on the verge of buying the rapidly growing online ticket reseller StubHub Inc. for about $300 million in cash, according to a person close to the deal.
If the sale is completed, eBay would gain control of one of the nation’s fastest-growing companies. San Francisco-based StubHub runs an online market for buying and selling tickets to major events – an alternative outlet that has been thriving even as its existence incensed some of the sports teams whose tickets are being resold above their face value.
StubHub says buyers paid more than $400 million for tickets sold on its site, generating more than $100 million in revenue for the 6-year-old company, which is privately held. Scalpers pay a 15 percent fee to sell tickets on the site while the buyers are charged a 10 percent commission.
Ebay has been pursuing StubHub off and on for years and nearly bought the startup for $20 million in 2002 before negotiations fell apart.
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