Ebay Inc 8-K/A, filed Jun 4, 2024
Ebay Inc (EBAY)
8-K/A
2024-06-04
For: 2024-05-29
View Original
Added on
April 09, 2026
About this 8-K/A
Ebay Inc filed this 8-K/A on June 4, 2024, reporting on events of May 29, 2024.
Items reported
- Item 9.01: Financial statements and exhibits
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 29, 2024
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||||||
| of incorporation) | Identification No.) | |||||||
(Address of principal executive offices)
(Registrant's telephone number, including area code)
Not Applicable.
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Explanatory Note
This Current Report on Form 8-K/A (this “Amendment”) amends the Current Report on Form 8-K of eBay Inc. (“eBay”) filed with the Securities and Exchange Commission on May 29, 2024 (the “Initial Form 8-K”), which described, among other matters, eBay’s completed sale of (1) 227,115,592 shares of Adevinta ASA (“Adevinta”) to Aurelia BidCo 1 Norway AS in exchange for approximately $2.4 billion in cash and (2) 177,115,591 shares of Adevinta to Aurelia Netherlands TopCo B.V. (“TopCo”) in exchange for the issuance of 177,115,591 shares in TopCo (collectively, the “Transactions”) pursuant to the Bid Conduct Agreement and the Transaction Completion Agreement (each as defined in the Initial Form 8-K). This Amendment amends and supplements the Initial Form 8-K, which is incorporated herein by reference, to include unaudited pro forma financial information required by Item 9.01(b) of Form 8-K in connection with the Transactions. No other amendments to the Initial Form 8-K are being made by this Amendment.
Item 9.01. Financial Statements and Exhibits
(b) Pro Forma Financial Information.
The unaudited pro forma financial information relating to the Transactions required by Item 9.01(b) of Form 8-K is included as Exhibit 99.1 to this Amendment and is incorporated herein by reference.
(d) Exhibits.
The following materials are attached as exhibits to this Amendment:
| Exhibit Number | Description | ||||
| Unaudited Pro Forma Condensed Consolidated Financial Information | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| eBay Inc. | ||||||||
| (Registrant) | ||||||||
| Date: June 4, 2024 | /s/ Molly Finn | |||||||
| Name: Molly Finn | ||||||||
| Title: Vice President & Deputy General Counsel, Corporate & Assistant Secretary | ||||||||
Exhibit 99.1
Unaudited Pro Forma Condensed Consolidated Financial Information
On May 29, 2024, eBay Inc. (“eBay”) completed the sale of (1) 227,115,592 shares of Adevinta ASA (“Adevinta”) to Aurelia BidCo 1 Norway AS (“BidCo 1”) in exchange for approximately $2.4 billion in cash and (2) 177,115,591 shares of Adevinta to Aurelia Netherlands TopCo B.V. (“TopCo”) in exchange for the issuance of 177,115,591 shares in TopCo (collectively, the “Transactions”).
The following unaudited pro forma condensed consolidated financial information has been derived from the historical financial statements of eBay Inc., adjusted to give effect to the consummation of the Transactions pursuant to the Bid Conduct Agreement and the Transaction Completion Agreement, each dated as of November 21, 2023 and amended as of May 10, 2024, by and among eBay, eBay International Holding GmbH, a wholly owned subsidiary of eBay ("eBay GmbH"), eBay International Management B.V., a wholly owned subsidiary of eBay (together with eBay and eBay GmbH, the "eBay Parties"), BCP Aurelia Luxco S.à r.l., Aurelia UK Feederco Limited (the "Equity Investor"), TopCo, Aurelia BidCo Norway AS (“BidCo”) and BidCo 1. BidCo 1 is a wholly owned subsidiary of BidCo incorporated under the laws of Norway, BidCo is a wholly owned subsidiary of TopCo incorporated under the laws of Norway, and TopCo is a private limited company incorporated under the laws of the Netherlands. In connection with the Transactions, the eBay Parties also granted the Equity Investor a six-month option to purchase TopCo shares from the eBay Parties (the "Purchase Option"), which, if exercised, would reduce eBay's ownership in TopCo to approximately 8.3%. This unaudited pro forma condensed consolidated financial information should be read in conjunction with the accompanying notes and tax rate assumption as well as the historical consolidated financial statements and related notes of eBay.
The unaudited pro forma condensed consolidated financial statements as of and for the three months ended March 31, 2024 are based on eBay's historical unaudited consolidated financial statements. The unaudited pro forma consolidated statement of income for the year ended December 31, 2023 is based on eBay's historical audited consolidated financial statements. eBay's historical audited consolidated financial statements were filed on February 28, 2024 with its Annual Report on Form 10-K for the year ended December 31, 2023, and its historical unaudited financial statements as of and for the three months ended March 31, 2024 were filed on May 2, 2024 with its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.
The unaudited pro forma condensed consolidated statements of income for the year ended December 31, 2023 and the three months ended March 31, 2024 assume that the Transactions occurred on January 1, 2023. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2024 assumes that the Transactions occurred on March 31, 2024. The unaudited pro forma condensed consolidated financial information and transaction accounting adjustments are preliminary and have been made solely for informational purposes, are not intended to be a complete presentation of eBay's financial position or results of operations had the Transactions occurred as of and for the periods presented and are not necessarily indicative of the condensed consolidated financial position or results of operations that would have been realized had the Transactions occurred as of the dates indicated, nor are they meant to be indicative of any anticipated condensed consolidated financial position or future results of operations that eBay will experience. For example, the accompanying unaudited pro forma condensed consolidated statements of income do not include the gain on disposition of Adevinta shares by eBay. The adjustments presented are based on currently available information and certain preliminary estimates and assumptions, including preliminary estimates of the fair value of the Purchase Option. Therefore, actual results may differ from the pro forma adjustments.
eBay Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
| As of March 31, 2024 | |||||||||||||||||
| (In millions) | |||||||||||||||||
| As Reported | Transaction Accounting Adjustments | Pro Forma | |||||||||||||||
| ASSETS | |||||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 2,130 | $ | 2,431 | (1) | $ | 4,561 | ||||||||||
| Short-term investments | 1,743 | — | 1,743 | ||||||||||||||
| Equity investment in Adevinta | 4,240 | (4,240) | (2) | — | |||||||||||||
| Customer accounts and funds receivable | 1,108 | — | 1,108 | ||||||||||||||
| Other current assets | 1,185 | — | 1,185 | ||||||||||||||
| Total current assets | 10,406 | (1,809) | 8,597 | ||||||||||||||
| Long-term investments | 1,546 | 1,858 | (3) | 3,404 | |||||||||||||
| Property and equipment, net | 1,281 | — | 1,281 | ||||||||||||||
| Goodwill | 4,235 | — | 4,235 | ||||||||||||||
| Operating lease right-of-use assets | 469 | — | 469 | ||||||||||||||
| Deferred tax assets | 3,052 | — | 3,052 | ||||||||||||||
| Other assets | 429 | — | 429 | ||||||||||||||
| Total assets | $ | 21,418 | $ | 49 | (4) | $ | 21,467 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
| Current liabilities: | |||||||||||||||||
| Short-term debt | $ | 1,551 | $ | — | $ | 1,551 | |||||||||||
| Accounts payable | 300 | — | 300 | ||||||||||||||
| Customer accounts and funds payable | 1,145 | — | 1,145 | ||||||||||||||
| Accrued expenses and other current liabilities | 1,929 | 146 | (5) | 2,075 | |||||||||||||
| Income taxes payable | 308 | 463 | (6) | 771 | |||||||||||||
| Total current liabilities | 5,233 | 609 | 5,842 | ||||||||||||||
| Operating lease liabilities | 362 | — | 362 | ||||||||||||||
| Deferred tax liabilities | 2,417 | (484) | (7) | 1,933 | |||||||||||||
| Long-term debt | 6,174 | — | 6,174 | ||||||||||||||
| Other liabilities | 959 | — | 959 | ||||||||||||||
| Total liabilities | 15,145 | 125 | 15,270 | ||||||||||||||
| Total stockholders' equity | 6,273 | (76) | (8) | 6,197 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 21,418 | $ | 49 | $ | 21,467 | |||||||||||
Notes to unaudited pro forma condensed consolidated balance sheet
1.Reflects cash received on sale of Adevinta shares.
2.Reflects the disposition of ownership interest in Adevinta.
3.Reflects the fair value of the shares of TopCo received in exchange for shares of Adevinta.
4.Reflects the pre-tax gain on sale of Adevinta shares in exchange for cash.
5.Reflects the fair value of the Purchase Option of $131 million, third party accounting, legal and advisory costs directly attributable to the Transactions of $8 million and Swiss Transaction Tax expected to be paid as part of the Transactions of $7 million. The Purchase Option is valued as of May 29, 2024 using a Black-Scholes model. Key inputs and assumptions used in the valuation include risk-free interest rates, the common stock price as of May 29, 2024, equity volatility, exercise price, and details specific to the Purchase Option. The fair value of the Purchase Option is based on currently available information and preliminary estimates and assumptions.
6.Reflects expected cash tax on the proportion of Adevinta shares disposed.
7.Reflects a $456 million reduction in deferred tax liability for the proportion of Adevinta shares disposed and a $28 million tax impact related to the fair value of the Purchase Option.
8.Reflects the effect on total stockholders' equity of the adjustments described in notes (1) through (7) above.
2
eBay Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Income
| Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| As Reported | Transaction Accounting Adjustments | Pro Forma | |||||||||||||||||||||||||||
| Net revenues | $ | 2,556 | $ | — | $ | 2,556 | |||||||||||||||||||||||
| Cost of net revenues | 700 | — | 700 | ||||||||||||||||||||||||||
| Gross profit | 1,856 | — | 1,856 | ||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| Sales and marketing | 541 | — | 541 | ||||||||||||||||||||||||||
| Product development | 351 | — | 351 | ||||||||||||||||||||||||||
| General and administrative | 238 | — | 238 | ||||||||||||||||||||||||||
| Provision for transaction losses | 91 | — | 91 | ||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 4 | — | 4 | ||||||||||||||||||||||||||
| Total operating expenses | 1,225 | — | 1,225 | ||||||||||||||||||||||||||
| Income from operations | 631 | — | 631 | ||||||||||||||||||||||||||
Interest and other: | |||||||||||||||||||||||||||||
| Gain (loss) on equity investments and warrant, net | (97) | 234 | (1) | 137 | |||||||||||||||||||||||||
Interest expense | (66) | — | (66) | ||||||||||||||||||||||||||
Interest income and other, net | 68 | — | 68 | ||||||||||||||||||||||||||
| Income before income taxes | 536 | 234 | 770 | ||||||||||||||||||||||||||
Income tax provision | (97) | (49) | (2) | (146) | |||||||||||||||||||||||||
| Income from continuing operations | $ | 439 | $ | 185 | $ | 624 | |||||||||||||||||||||||
| Income per share: | |||||||||||||||||||||||||||||
| Basic | $ | 0.85 | $ | 0.36 | $ | 1.21 | |||||||||||||||||||||||
| Diluted | $ | 0.85 | $ | 0.36 | $ | 1.21 | |||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||
| Basic | 516 | 516 | |||||||||||||||||||||||||||
| Diluted | 519 | 519 | |||||||||||||||||||||||||||
Notes to unaudited pro forma condensed consolidated statement of income
1.Reflects the elimination of unrealized mark-to-market loss due to the disposition of ownership interest in Adevinta.
2.For purposes of determining the estimated income tax expense for pro forma adjustments reflected in the unaudited pro forma condensed consolidated statement of income, the statutory rate of 21% was applied for the three months ended March 31, 2024.
3
eBay Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Income
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| As Reported | Transaction Accounting Adjustments | Pro Forma | |||||||||||||||||||||||||||
| Net revenues | $ | 10,112 | $ | — | $ | 10,112 | |||||||||||||||||||||||
| Cost of net revenues | 2,833 | — | 2,833 | ||||||||||||||||||||||||||
| Gross profit | 7,279 | — | 7,279 | ||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| Sales and marketing | 2,217 | — | 2,217 | ||||||||||||||||||||||||||
| Product development | 1,544 | — | 1,544 | ||||||||||||||||||||||||||
| General and administrative | 1,196 | — | 1,196 | ||||||||||||||||||||||||||
| Provision for transaction losses | 360 | — | 360 | ||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 21 | — | 21 | ||||||||||||||||||||||||||
| Total operating expenses | 5,338 | — | 5,338 | ||||||||||||||||||||||||||
| Income from operations | 1,941 | — | 1,941 | ||||||||||||||||||||||||||
Interest and other: | |||||||||||||||||||||||||||||
| Gain (loss) on equity investments and warrant, net | 1,832 | (1,782) | (1) | 50 | |||||||||||||||||||||||||
Interest expense | (263) | — | (263) | ||||||||||||||||||||||||||
Interest income and other, net | 197 | — | 197 | ||||||||||||||||||||||||||
| Income before income taxes | 3,707 | (1,782) | 1,925 | ||||||||||||||||||||||||||
Income tax provision | (932) | 376 | (2) | (556) | |||||||||||||||||||||||||
| Income from continuing operations | $ | 2,775 | $ | (1,406) | $ | 1,369 | |||||||||||||||||||||||
| Income per share: | |||||||||||||||||||||||||||||
| Basic | $ | 5.24 | $ | (2.65) | $ | 2.59 | |||||||||||||||||||||||
| Diluted | $ | 5.21 | $ | (2.64) | $ | 2.57 | |||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||
| Basic | 530 | 530 | |||||||||||||||||||||||||||
| Diluted | 533 | 533 | |||||||||||||||||||||||||||
Notes to unaudited pro forma condensed consolidated statement of income
1.Reflects the elimination of unrealized mark-to-market gain due to the disposition of ownership interest in Adevinta.
2.For purposes of determining the estimated income tax expense for pro forma adjustments reflected in the unaudited pro forma condensed consolidated statement of income, the statutory rate of 21% was applied for the year ended December 31, 2023.
4