EBay moves forward with potential StubHub sale: Sources

Key Points
  • The sources said eBay is still early in the process, but note there are "multiple" parties interested in buying StubHub.
  • Shares of eBay jumped on the news.
Devin Wenig, CEO of eBay at the 2018 WEF in Davos, Switzerland.
Adam Galica | CNBC

EBay is moving forward with a potential sale of ticket exchange company StubHub, sources told CNBC's David Faber.

The sources said eBay is still early in the process, but note there are "multiple" parties interested in buying StubHub.

Shares of eBay initially jumped 2.8% on the news. The stock has been on a tear this year, rallying more than 45%. It is also outperforming the S&P 500, which is up 19% in 2019.

The news comes after eBay announced a strategic portfolio review on March 1.

The stock later ended the normal session down 2%, but reversed to trade nearly 6% higher postmarket after the company reported better-than-expected earnings.

"We're making significant progress and actively reviewing the role and value of StubHub and Classifieds in our portfolio," eBay CEO Devin Wenig said on Wednesday's earnings call. He said the company is "focused on determining the best path forward to create shareholder value."

EBay has been under activist pressure this year after Elliott Management took a $1.4 billion stake in the company. Starboard Value, another activist investor, has also taken a stake in the company.

EBay declined to comment. The company is scheduled to report quarterly earnings after the close Wednesday.