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.

 

Avatar

Editorial Staff @portada_online

Portada Staff

MORE FROM PORTADA



Curacao’s CMO Ariela Nerubay: Automated Behavioral Emails More Than Double Open and Click-Through Rates

Curacao’s CMO Ariela Nerubay: Automated Behavioral Emails More Than Double Open and Click-Through Rates

Two years ago, the large-format retail store chain Curacao, headquartered in Los Angeles, began to send out automated emails based on customers’ interactions on Curacao’s website. The results have proven impressive, and Curacao plans to roll out new features offered by its automated emailing tool in the coming months.