eBay to Buy Cox Automotive, Boost Classifieds in Australia
eBay Inc. EBAY recently agreed to acquire Cox Automotive Media Solutions for an undisclosed amount.
Cox Automotive Media Solutions is a leading automotive platform in Australia that allows users to review, buy and sell cars therein. The company owns two consumer brands, namely CarsGuide.com.au and Autotrader.com.au.
Post the completion of the acquisition, both the automotive platforms will join the Gumtree business in Australia, which is part of the eBay Classifieds Group (eCG) portfolio.
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The latest deal will likely expand the eCG portfolio. Gumtree has approximately 1,800 dealers and 80,000 private-party listings. The addition of Autotrader.com.au, which has about 2,300 dealers and 90,000 listings, will expand eBay’s portfolio in Australia.
The deal will enable car dealers in Australia to easily reach more customers and certainly give more choices to buyers. The buyout will provide opportunities for cross-platform synergies with eBay Australia marketplace, and develop a more competitive and attractive platform for Australian consumers.
The latest move will aid the company in expanding business in the e-commerce market and strengthening the client base on a global basis.
During the last reported quarter, eBay’s Classifieds platform performed impressively. The Classifieds platforms contributed $265 million to revenues, up 4% year over year on a reported basis and 8% on an FX-Neutral basis.
The latest buyout will further attract customers to the platform, in turn driving its sales.
eBay is one of the world's largest online trading communities with a powerful marketplace for the sale of goods and services by individuals, as well as small businesses. The company enables trade on a local, national and international basis via local sites in numerous markets in the United States, along with country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.
eBay Classifieds are designed to help people in free listing of products and services. This February, eBay acquired Motors.co.uk in the United Kingdom, helping eBay to expand the classifieds business by giving U.K. car dealers a significantly broader reach.
eBay is making all efforts to improve the Classifieds business. It is currently re-platforming itself by building product catalogs on structured data, enhancing mobile platform, rolling out new browse-inspired shopping journeys and strengthening its brand.
However, intensifying competition in the e-commerce space and foreign exchange headwinds remain major concerns.
Zacks Rank & Stocks to Consider
eBay currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. MTSI, Itron, Inc. ITRI and Fiverr International Ltd. FVRR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for MACOM Technology, Itron and Fiverr is currently projected at 15%, 25% and 44.2%, respectively.
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