StubHub Ticket Platform Files for IPO
StubHub Holdings Inc., a prominent ticket selling platform, recently filed for an initial public offering, revealing significant revenue growth and a minor annual loss for the year 2024. In the filing submitted to the Securities and Exchange Commission on Friday, StubHub reported a loss of $2.8 million on revenue of $1.77 billion in the previous year, a notable contrast to the net income of $405 million on revenue of $1.37 billion in 2023. Despite a decline from the preceding year, the company’s adjusted earnings before interest, taxes, depreciation, and amortization for 2024 stood at $299 million, showcasing a resilient performance amidst challenging market conditions.
A Closer Look at the Numbers
The New York-based entity has refrained from disclosing the proposed size or price range for the share sale until a subsequent filing, which will mark the commencement of the offering to potential investors. The decision to go public comes after StubHub’s initial plans for an IPO in the previous year were put on hold due to unfavorable market circumstances, following a surge in sales attributed to Taylor Swift’s The Eras Tour, as reported by Bloomberg News in July.
Chief Executive Eric Baker, a co-founder of StubHub, parted ways with the business before its acquisition by eBay Inc. in 2007 for $310 million. Baker went on to establish Viagogo in Europe, which later acquired StubHub for $4.05 billion in 2019. The merger was finalized the subsequent year, with the unified entity operating under both brand names. Notably, Baker retains a 5.2% stake in Class A shares and holds over 90% of the voting power in the company pre-offering, courtesy of his Class B shares carrying 100 votes each.
Madrone Partners LP holds a 27% ownership stake in StubHub, with a 2.8% voting power, while WestCap Management and Bessemer Venture Partners possess an 11% and 9.6% stake, respectively. Both Madrone and Bessemer have secured board seats within the company, indicating a significant level of influence in strategic decision-making processes.
Global Reach and Leading Banks
Spanning across more than 200 countries through its ticketing platforms, StubHub and Viagogo have established a robust presence in the ticket reselling domain, catering to a diverse global audience. The upcoming IPO is being spearheaded by JPMorgan Chase & Co. and Goldman Sachs Group Inc., in collaboration with a consortium of over 10 other financial institutions. The company intends for its shares to be listed on the New York Stock Exchange under the symbol STUB, marking a significant milestone in its journey towards greater market visibility and investor engagement.
In a comprehensive coverage by Bloomberg’s Lipschultz and Roof, with support from Gillian Tan, the narrative of StubHub’s IPO filing emerges as a testament to the company’s resilience and adaptability in the face of evolving market dynamics. As the ticketing industry continues to evolve and embrace digital transformation, StubHub’s strategic positioning and commitment to customer-centric innovation are poised to drive sustained growth and value creation in the foreseeable future.
Stay tuned for further updates on StubHub’s IPO journey, as the company navigates through the intricacies of the public markets, setting the stage for a new chapter in its storied history.
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