StubHub, one of the largest ticket resale marketplaces in the industry, has filed for an initial public offering, according to an SEC filing the company submitted on Friday.
Per the S-1 filing reviewed by The Hollywood Reporter, StubHub has applied for listing on the NYSE, trading under the symbol “STUB.” The company didn’t disclose the number of shares it will be selling. StubHub reported a $2.8 million net loss last year on $1.77 billion in revenue last year, the filing said, compared to more than $405 million in profit in 2023 on about $1.37 billion in revenue.
The company was founded 25 years ago by CEO Eric Baker. Baker left the company when it sold to eBay back in 2007, eventually founding Viagogo, another secondary ticket seller. Viagogo purchased StubHub back in 2019, reuniting Baker with his old company. StubHub had been rumored to be readying an IPO for months. The company said it sold more than 40 million tickets last year, with a million unique sellers on the platform.
StubHub’s model is based around users reselling tickets to concerts, major sporting events and other live ticketed events, with the company earning revenue most directly through fees it collects from purchases and sales on its platform set based on the price of the ticket. StubHub’s business is therefore very dependent on demand. In an extreme example, Taylor Swift’s wildly popular Eras tour, for example, raised StubHub’s gross merchandise by 14 percent all on its own in 2023, per the filing.
The marketplace for concert tickets in particular has been a source of significant frustration for fans in recent years (most directly toward Ticketmaster, though also at StubHub and other secondary platforms) with ticket buyers bemoaning the fees, high prices and scalpers gouging fans after beating them for tickets. Washington, D.C.’s attorney general filed a lawsuit against StubHub last year over allegations of predatory pricing tactics.
Despite the anger and sticker shock, sales for superstars’ tours have remained strong in recent years, though some insiders have braced for a weaker year citing a tightened economy, alon with several major artists having to cancel tours in 2024 over weak sales. Still, in StubHub’s filing the company said it expects consumers will continue to be “prioritizing live events and experiences over product” with their disposable income.
“We believe the irreplaceable role that collective experiences play in fostering human connection will continue to accelerate and solidify the draw of, and demand for, live events in the years to come,” StubHub said in its filing.
Read the full article here
