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 Staff

MORE FROM PORTADA

GroupM’s Susan Schiekofer and Undertone’s Michael Pallad Will Discuss Brand Safety at #PortadaNY

GroupM’s Susan Schiekofer and Undertone’s Michael Pallad Will Discuss Brand Safety at #PortadaNY

Do digital advertising standards and policies need to change in the light of fake news, transparency and ad fraud issues? Hear from the executive responsible for digital trading and implementation across all of GroupM’s agencies about what needs to be done so that brands demands are 100% met.



Women in Marketing and Media: If You Don’t See Her, You Can’t Be Her

Women in Marketing and Media: If You Don’t See Her, You Can’t Be Her

Although women are increasingly more visible in the industry, there’s still a long path to go towards women achieving their full potentials and pushing their untapped capabilities to the maximum, especially for Hispanic and African-American women, who feel their barriers are even higher.