EBay Said Seeking Stake in Classifieds Sale, Hurting Prosus Bid

EBay Inc. would prefer to keep a stake in the classified advertising business it’s selling, according to people familiar with the matter, lessening the chances Prosus NV will win the hotly-contested auction.

The decision at a board meeting on Friday gives a surprise boost to a bid from Norwegian online marketplace Adevinta ASA, which offered a mix of cash and stock and would leave EBay with a significant stake in the combined business, the people said, asking not to be identified as discussions aren’t public. A combination of the classifieds unit with the listed Scandinavian firm would also allow ...