eBay spent 310 million dollars to buy StubHub

eBay Inc. trying to buy online ticket broker StubHub Inc. with a price of 310 million USD in cash. This move by EBay aims to expand this ticket brokering site into its electronic sales market on the Internet.

eBay announced the contract was released late on Wednesday, after information about the deal leaked. StubHub's sales are in danger of closing in April, putting an end to an unexpectedly successful business story on the Internet.

Jeff Fluhr - 32, founder of StubHub and also CEO, opened the San Francisco-based company against the gloom of .com tail sites half a year ago with a friend is an alumnus of Stanford Graduate School of Business, Eric Baker.

Jeff Fluhr - StubHub Executive Director.

" StubHub's business model fits perfectly with eBay, a company we have long admired, " Fluhr said in a statement. " StubHub exists to serve passionate fans with the company and we know very well how our customers will benefit from the power of eBay - the community of users ."

EBay's market price has fallen by nearly 50% or $ 37 billion, over the past two years, amid investor concerns about slow growth of online auctions, boosting the firm's expanding into e-commerce business channels.

eBay has recently acquired internet phone service Skype and online shopping comparison service Shopping.com. However, both did not become a truly complete acquisition for eBay as the purchase of PayPal online payment service in 2002.

StubHub runs an online market that sells tickets for major events, creating a market that can choose to do well in the sports field with reselling tickets at a printed price.

StubHub said customers buying tickets online spent almost $ 400 million on the site in 2006, which means the company earned 100 million in profits. All ticket companies have to pay 15% of the cost of selling tickets online, while buyers lose 10% commission.

Since opening, StubHub has brokered to sell more than 5 million tickets. Despite not announcing profits, StubHub currently works very well with about 350 employees at its headquarters in San Francisco, and about 10 small offices across the country.

Ph