2024-05-30 22:50:21 ET
eBay Inc. (EBAY)
Bernstein 40th Annual Strategic Decisions Conference
May 30, 2024 01:30 PM ET
Company Participants
Stephen Priest - CFO
Conference Call Participants
Nikhil Devnani - Bernstein
Presentation
Nikhil Devnani
All right. Good afternoon, everybody. Thank you so much for being here. My name is Nikhil Devnani. I'm Bernstein's U.S. emerging Internet analyst, covering eBay, and it's my pleasure today to be hosting Steve Priest, CFO of eBay. Steve has been in the role for the past three years, where eBay has been progressing along its transition towards enthusiast buyers and focus verticals, and we're going to get into that discussion today. Steve, welcome back to the SDCs. It's great to have you.
Stephen Priest
Thank you, Nikhil. It's great to see you. Great to be back here again, and good afternoon, everyone. Looking forward to the session.
Question-and-Answer Session
Q - Nikhil Devnani
Before we get started, I just wanted to remind everybody that you can submit questions for this session as well. You can use the QR code in your agenda, or you could go to pigeonhole.at. And the passcode, I believe, is SDC2024. And I'll try and work your questions into the conversation as well.
So with that, let's get the discussion underway. Maybe with some news to kick-off. This week, you announced that the Adevinta deal closed. Maybe for folks in the room that are a little bit less familiar, can you just walk through what that deal was, what the implications are for eBay now from a cash inflow perspective, because you've basically divested a portion of your equity stake there.
Stephen Priest
Yeah. Thank you, Nikhil. So as you'd said yesterday, we shared via an 8-K the news that we sold a significant stake in Adevinta. So Adevinta was publicly traded. We saw the opportunity as a consortium coming in. We generated significant benefits for shareholders. The price on the trade was 50% increase on the undisturbed price when the initial transaction was discussed. We realized $2.4 billion yesterday, as a result of the holding.
We retain 18% in the company and the existing consortium of shareholders have an option to take another sort of 10% off the table at their discretion over the next six months. Really, really pleased that we've been able to create that level of value. We continue to be very good stewards of capital in the overall paradigm of eBay. Really pleased with the work the teams have done and as ever, very focused on driving shareholder returns....
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eBay Inc. (EBAY) Bernstein 40th Annual Strategic Decisions Conference (Transcript)