July 20, 2020 / 5:43 AM / 24 days ago

CORRECTED-Ebay nears deal to sell classified-ads unit to Norway's Adevinta - WSJ

(Corrects spelling of ‘Adevinta’ in headline and penultimate paragraph)

July 20 (Reuters) - EBay Inc is in advanced talks to sell its classified-ads unit to Norwegian group Adevinta as the online auction pioneer seeks to refocus on its core marketplace business, the Wall Street Journal reported on Monday. The price of the cash-and-stock deal was not disclosed, but the eBay unit is expected to sell for roughly $8 billion or more and the agreement could be announced as soon as Monday, WSJ on.wsj.com/2DZSAuq said, citing people familiar with the matter.

Demand for online market places has surged during the coronavirus pandemic as consumers have turned to online shopping due to the prolonged lockdown and social distancing measures in place in most countries.

Ebay’s classified business includes brands such as Gumtree and Kijiji and offers online ads to more than 1,000 cities around the world.

The unit posted an operating income of $83 million and revenue of $248 million in the first quarter of 2020.

Last week Reuters reported that the U.S. e-commerce giant had offers submitted by online retailer Prosus, a private equity consortium and Adevinta.

EBay and Adevinta did not immediately respond to a Reuters request for comment. (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips)

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