FLASH! For $310 million in Cash eBay Makes "StubHub Hubbub"

Purchase of online tix broker "a perfect complement to eBay's tickets business"

In an aggressive move to expand its own ticket brokering business, eBay has agreed to acquire online ticket re-seller StubHub Inc. for $310 million in cash. The blockbuster deal was announced on eBay's announcement board late Wednesday after word had leaked to the press.

StubHub operates an online market for the reselling of tickets that has become a thriving option to some buyers even as it has taken some flak from sports teams who see tickets to their games re-sold at a premium above face value. Ironically, NFL Hall-of-Famer Steve Young, former San Francisco 49rs quarterback, was an early investor in the Bay Area company.

eBay has had an on and off courtship of StubHub for several years and nearly bought the firm for $20 million back in 2002 before talks broke down.

As it moves to quell investor concerns over declining growth - concerns that have seen the company's market cap plunge 50% ($37 million) in the past two years and that have fueled speculation about the future of CEO Meg Whitman - eBay has agressively sought expansion into other channels of e-commerce.

StubHub is a "perfect complement to eBay's tickets business," said Bill Cobb, president of the auctioneer's North America marketplace. "Together we can strengthen both businesses and provide fans with more choice and better service."

For his part, StubHub co-founder Jeff Fluhr said....well, he said a few words for the record, but it's what must be going on behind closed doors that we'd find most interesting. Like, the guy just sold his company for 310 large in cash. A few rounds of "Who's da man?" would seem apropos, no?