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Discontinued Operations
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
eBay Korea

In 2021, we completed the previously announced sale of 80.01% of the outstanding equity interests of eBay Korea to E-mart for approximately $3.0 billion of gross cash proceeds as of the transaction close date, subject to certain adjustments specified for indebtedness, cash, working capital, transaction expenses and certain taxes. The sale resulted in a pre-tax gain of $3.2 billion inclusive of a $81 million currency translation adjustment and a $44 million gain net of tax on the net investment hedge settled in the fourth quarter of 2021, as well as income tax expense of $369 million.

In addition, upon closing we entered into a transition service agreement with eBay Korea to support the operations of eBay Korea after the divestiture for immaterial fees. This agreement terminated during the third quarter of 2022.

Classifieds

In 2021, we completed the previously announced transfer of our Classifieds business to Adevinta for total consideration of $13.3 billion which included $2.5 billion in cash proceeds and approximately 540 million shares of Adevinta valued at $10.8 billion on the date of close and represented a 44% equity interest. The transfer resulted in a pre-tax gain of $12.5 billion and related income tax expense of $2.1 billion, both within income from discontinued operations.

In addition, upon closing we entered into a transition service agreement with Adevinta to support the operations of Classifieds after the divestiture for fees of $29 million. This agreement terminated during the second quarter of 2022 with the exception of Gumtree UK which terminated during the fourth quarter of 2022.

StubHub

In 2020, we completed the previously announced sale of our StubHub business to an affiliate of viagogo for $4.1 billion in proceeds ($3.2 billion, net of income taxes of approximately $0.9 billion) and a pre-tax gain of $3.9 billion within income from discontinued operations.

In addition, upon closing we entered into a transition service agreement with viagogo pursuant to which we provided services, including, but not limited to, business support services for StubHub after the divestiture. These agreements terminated in the fourth quarter of 2021. The related fees in 2021 were $34 million for support services prior to termination.

Discontinued operations

The following table presents financial results from discontinued operations, net of income taxes in our consolidated statement of income for the periods indicated (in millions):
 Year ended December 31,
 2022
2021 (1)(2)
2020 (3)
eBay Korea income (loss) from discontinued operations, net of income taxes$— $2,870 $55 
Classifieds income (loss) from discontinued operations, net of income taxes5 10,485 197 
StubHub income (loss) from discontinued operations, net of income taxes
— 1 2,930 
PayPal and Enterprise income (loss) from discontinued operations, net of income taxes— — (2)
Income (loss) from discontinued operations, net of income taxes$5 $13,356 $3,180 
(1)Includes eBay Korea financial results through the transaction close on November 14, 2021 and the related gain on sale.
(2)Includes Classifieds financial results through the transaction close on June 24, 2021 and the related gain on sale.
(3)Includes StubHub financial results from January 1, 2020 to February 13, 2020 and the related gain on sale.
The following table presents cash flows for discontinued operations for the periods indicated (in millions):
 Year ended December 31,
 2022
2021 (1)(2)
2020 (3)
eBay Korea net cash provided by (used in) discontinued operating activities
$(370)$(25)$142 
Classifieds net cash provided by (used in) discontinued operating activities
(3)(411)328 
StubHub net cash provided by (used in) discontinued operating activities— — (1,055)
Net cash provided by (used in) discontinued operating activities$(373)$(436)$(585)
eBay Korea net cash provided by (used in) discontinued investing activities
$2 $2,611 $(40)
Classifieds net cash provided by (used in) discontinued investing activities
— 2,469 (54)
StubHub net cash provided by (used in) discontinued investing activities— — 4,067 
Net cash provided by (used in) discontinued investing activities $2 $5,080 $3,973 
eBay Korea net cash provided by (used in) discontinued financing activities
$— $25 $(10)
Classifieds net cash provided by (used in) discontinued financing activities
— — (2)
Net cash provided by (used in) discontinued financing activities$— $25 $(12)
(1)Includes eBay Korea financial results through the transaction close on November 14, 2021 and the related gain on sale.
(2)Includes Classifieds financial results through the transaction close on June 24, 2021 and the related gain on sale.
(3)Includes StubHub financial results from January 1, 2020 to February 13, 2020 and the related gain on sale.

eBay Korea

The financial results of eBay Korea are presented as income from discontinued operations, net of income taxes on our consolidated statement of income through November 14, 2021, when the sale of 80.01% of the outstanding equity interests of eBay Korea was completed. The following table presents the financial results of eBay Korea (in millions):
 Year ended December 31,
 2022
2021 (1)
2020
Net revenues$— $1,409 $1,377 
Cost of net revenues— 815 676 
Gross profit— 594 701 
Operating expenses:
Sales and marketing— 529 548 
Product development— 64 59 
General and administrative— 38 18 
Provision for transaction losses— — 1 
Total operating expenses— 631 626 
Income (loss) from operations of discontinued operations— (37)75 
Interest and other, net— 2 — 
Pre-tax gain on sale— 3,240 — 
Income (loss) from discontinued operations before income taxes— 3,205 75 
Income tax benefit (provision)— (335)(20)
Income (loss) from discontinued operations, net of income taxes$— $2,870 $55 
(1)Includes eBay Korea financial results through the transaction close on November 14, 2021 and the related gain on sale.
Classifieds

The financial results of Classifieds are presented as income from discontinued operations, net of income taxes on our consolidated statement of income through June 24, 2021, when the transfer of Classifieds was completed. Each period presented below includes the impact of intercompany revenue agreements through June 24, 2021. The impact of these intercompany revenue agreements to net revenues and cost of net revenues was $5 million for the period from January 1, 2021 through June 24, 2021, and $14 million the year ended December 31, 2020. The continuing revenue and cash flows are not considered to be material.

The following table presents the financial results of Classifieds (in millions):
 Year ended December 31,
 2022
2021 (1)
2020
Net revenues$— $565 $980 
Cost of net revenues— 63 103 
Gross profit— 502 877 
Operating expenses:
Sales and marketing— 183 286 
Product development— 105 161 
General and administrative(7)76 124 
Provision for transaction losses— 2 17 
Amortization of acquired intangible assets— — 6 
Total operating expenses(7)366 594 
Income from operations of discontinued operations7 136 283 
Interest and other, net— — — 
Pre-tax gain on sale— 12,534 — 
Income from discontinued operations before income taxes7 12,670 283 
Income tax provision(2)(2,185)(86)
Income from discontinued operations, net of income taxes$5 $10,485 $197 
(1)Includes Classifieds financial results through the transaction close on June 24, 2021 and the related gain on sale.

StubHub

The financial results of StubHub are presented as income from discontinued operations, net of income taxes on our consolidated statement of income. The following table presents the financial results of StubHub (in millions):
 Year ended December 31,
 20222021
2020 (1)
Net revenues$— $— $100 
Cost of net revenues— — 31 
Gross profit— — 69 
Operating expenses:
Sales and marketing— — 51 
Product development— — 26 
General and administrative— 1 30 
Provision for transaction losses— — 3 
Amortization of acquired intangible assets— — 1 
Total operating expenses— 1 111 
Income (loss) from operations of discontinued operations— (1)(42)
Pre-tax gain on sale— 12 3,868 
Income from discontinued operations before income taxes— 11 3,826 
Income tax provision— (10)(896)
Income from discontinued operations, net of income taxes$— $1 $2,930 
(1)Includes StubHub financial results from January 1, 2020 to February 13, 2020 and the related gain on sale.
PayPal and EnterpriseFor the years ended December 31, 2022, 2021 and 2020, the discontinued operations activity related to our former PayPal and Enterprise businesses was immaterial.