eBay Selling 20% Stake in MercadoLibre

What: EBay Inc. will sell most of its stake in MercadoLibre Inc., Latin America’s largest online marketplace.
Why it matters: MercadoLibre is one of the most active players in digital marketing in Latin America. At current prices, the offering would raise more than US$1 billion.

95250957ca13505b8668022fcc830da5_400x400 vpt3vjf3_400x400eBay Inc announced is selling its 20% stake in MercadoLibre Inc, which acquired back in 2001.

EBay is offering up to 5.5 million shares, and underwriters Morgan Stanley and JPMorgan Chase & Co. have an option to buy 825,000 extra MercadoLibre shares. At current prices, the offering would raise more than US$1 billion.eBay will retain the proceeds of however much it raises.

The San Jose, California-based e-commerce said the selling of the shares would mean  "significant gain" on its investment in MercadoLibre and the money will be used "in a manner consistent with our capital allocation strategy."

MercadoLibre and EBay will continue to work on cross-border transactions to help eBay sellers reach shoppers in Latin America.

MercadoLibre has a market value of US$8.1 billion and revenue last year of US$651.8 million.

 


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

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