Introduction
Founded in 1995 by Pierre Omidyar, eBay revolutionized the online marketplace by enabling person-to-person transactions through auctions. Over time, it evolved from a simple bidding site to a global e-commerce leader. To maintain its competitive edge and expand its reach, eBay has made numerous acquisitions and spun off or sold various subsidiaries. This article explores the key subsidiaries that have played vital roles in eBay’s evolution, along with a look at its former holdings and the company's shifting strategic focus.
1. StubHub (Former Subsidiary)
One of the most prominent names once associated with eBay was StubHub, a ticket resale marketplace founded in 2000 and acquired by eBay in 2007 for $310 million. StubHub allowed users to buy and sell tickets for concerts, sports, and theater events. Under eBay's ownership, StubHub expanded globally and became the largest ticket marketplace in the world.
However, in 2020, eBay sold StubHub to Viagogo (a Swiss-based ticket reseller) for about $4.05 billion in cash. The sale was part of eBay’s effort to streamline its operations and focus more on its core marketplace.
2. PayPal (Former Subsidiary)
Perhaps the most well-known eBay subsidiary was PayPal, the digital payments company. Acquired in 2002 for $1.5 billion, PayPal became the default payment method for eBay transactions and contributed significantly to eBay’s revenue growth. However, over time, PayPal developed its own brand and customer base independent of eBay.
Due to pressure from investors and to unlock value, eBay spun off PayPal as a separate publicly traded company in 2015. The move allowed both companies to grow independently. Today, PayPal is a financial technology giant, with a market value that has, at times, surpassed eBay’s own.
3. Kijiji / eBay Classifieds Group (Former Subsidiary)
Another significant part of eBay's business was eBay Classifieds Group, which operated several online classifieds platforms globally. Among these was Kijiji, a popular classifieds site in Canada and parts of Europe. Other platforms under this group included Gumtree (UK, Australia), Marktplaats (Netherlands), and Mobile.de (Germany).
In 2020, eBay agreed to sell the eBay Classifieds Group to Adevinta, a Norwegian classifieds company, for $9.2 billion. The transaction was completed in 2021, further streamlining eBay’s business around its core marketplace.
4. TNT Post / iBazar (Acquired and Merged Brands)
In various international expansions, eBay acquired or partnered with several regional marketplaces and rebranded them. One example was iBazar, a French auction site that eBay acquired in 2001 for €112 million. It was later absorbed into eBay’s main platform.
These moves helped eBay expand its global footprint in the early 2000s, although many of the brands were eventually retired as eBay consolidated its international operations under the eBay name.
5. Corrigon (Acquired in 2016)
To strengthen its artificial intelligence and image recognition capabilities, eBay acquired Corrigon, an Israeli-based visual search technology company, in 2016. This acquisition aimed to enhance the user experience by making image-based product discovery more effective.
Corrigon’s technology has been integrated into eBay’s platform, allowing users to search for items using photos rather than text, a feature particularly useful in fashion and home décor categories.
6. SalesPredict (Acquired in 2016)
Another strategic tech acquisition was SalesPredict, an Israeli startup focused on predictive analytics and machine learning. SalesPredict’s capabilities helped eBay improve its pricing algorithms and recommendation systems.
The acquisition aligned with eBay’s broader push into data science and artificial intelligence, aiming to make the marketplace more intuitive and competitive against platforms like Amazon.
7. Magento (Former Subsidiary)
eBay acquired Magento, an open-source e-commerce platform, in 2011 through its purchase of Magento Inc. The goal was to integrate Magento into eBay’s X.Commerce initiative to provide merchants with comprehensive e-commerce solutions.
However, eBay sold Magento to a private equity firm in 2015 as part of the PayPal spin-off. Magento was later acquired by Adobe in 2018 for $1.68 billion and is now a core part of Adobe’s commerce offering.
8. Shutl (Former Subsidiary)
To improve delivery logistics in the UK, eBay acquired Shutl, a same-day delivery startup, in 2013. Shutl provided rapid delivery options for retailers, aiming to compete with services like Amazon Prime.
However, as eBay shifted away from logistics, the Shutl service was discontinued in 2019. This marked a broader retrenchment from trying to build its own shipping infrastructure.
9. Giosis / Qoo10 (Partial Stake)
In Asia, eBay made a strategic investment in Giosis, which operated the Qoo10 marketplace in countries like Singapore, Japan, and Indonesia. Qoo10 was a joint venture with Gmarket's former founders (another eBay acquisition in South Korea).
In 2018, eBay sold its stake in Giosis’ non-Japanese businesses while retaining control over Qoo10 Japan. The move allowed eBay to consolidate its Asian efforts and focus on specific markets.
10. TCGplayer (Acquired in 2022)
In a notable recent acquisition, eBay purchased TCGplayer, a leading online marketplace for collectible card games like Magic: The Gathering and Pokémon, for about $295 million. This acquisition fits eBay’s focus on high-value enthusiast categories such as trading cards, sneakers, watches, and luxury goods.
TCGplayer remains an independent operation but benefits from eBay’s infrastructure and audience. The move reinforces eBay’s positioning as a top destination for collectors.
eBay’s Current Strategic Focus
In recent years, eBay has moved away from owning sprawling subsidiaries and has focused on optimizing its core marketplace. Key strategies include:
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Investing in verticals such as sneakers, trading cards, watches, and refurbished electronics.
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Enhancing AI tools for search, pricing, and personalization.
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Introducing authentication services for luxury and collectible goods.
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Partnering with logistics providers rather than building its own network.
eBay is no longer trying to compete head-on with Amazon in logistics or inventory. Instead, it's doubling down on unique, enthusiast-driven commerce and platforms that support high-trust transactions.
Conclusion
Over the past two decades, eBay has grown through a diverse array of subsidiaries and acquisitions, ranging from global payment platforms like PayPal to niche marketplaces like TCGplayer. However, its business strategy has shifted toward consolidation and focus. By divesting non-core businesses such as StubHub, the Classifieds Group, and PayPal, eBay has returned to its roots as a marketplace-centric company.
Today, the few subsidiaries it does maintain—like TCGplayer—reflect a targeted, strategic approach. As the e-commerce landscape continues to evolve, eBay’s adaptability and focus on high-value niches may prove to be its competitive advantage in the years ahead.
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