Ticket platform StubHub files for IPO
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Ticket selling platform StubHub Holdings Inc. filed for an initial public offering disclosing revenue growth and a small annual loss for 2024.
StubHub had a loss of $2.8 million on revenue of $1.77 billion last year, compared with net income of $405 million on revenue of $1.37 billion in 2023, according to its filing Friday with the Securities and Exchange Commission. The company’s adjusted 2024 earnings before interest, taxes, depreciation and amortization of $299 million, though down from the previous year, contrasted with a $57-million loss in 2022.
The New York-based company won’t disclose the proposed size or price range for the share sale until a future filing when it’s ready to begin marketing the offering to investors.
It’s unclear if the government will succeed in breaking up Live Nation and Ticketmaster, but the antitrust action raises big risks for the giant entertainment company.
StubHub had prepared for an IPO last year after sales boomed from Taylor Swift‘s The Eras Tour, only to postpone those plans citing unfavorable market conditions, Bloomberg News reported in July.
Chief Executive Eric Baker, one of StubHub’s co-founders, left before the business was sold in 2007 to eBay Inc. for $310 million. Baker later founded Viagogo in Europe. In 2019, Viagogo agreed to acquire StubHub for $4.05 billion. The deal was completed the following year, with the combined company continuing to do business under both names.
Baker holds 5.2% of the Class A shares and, with his Class B shares that carry 100 votes each, has more than 90% of the voting power in the company before the offering, the filing shows.
The DOJ, California and other states sued concert behemoth Live Nation, the parent of Ticketmaster, alleging antitrust violations that could force the company to break up.
Madrone Partners LP has a 27% stake in the business and 2.8% of the voting power, while WestCap Management owns an 11% stake and Bessemer Venture Partners holds 9.6%. Madrone and Bessemer have board seats at the company.
Across its ticketing platforms, StubHub and Viagogo, the ticket reselling operations span more than 200 countries, according to StubHub’s website.
The offering is being led by JPMorgan Chase & Co. and Goldman Sachs Group Inc. along with more than 10 other banks. The company plans for its shares to trade on the New York Stock Exchange under the symbol STUB.
Lipschultz and Roof write for Bloomberg, with assistance from Gillian Tan.
