Need to Know
- eBay has announced the selling of StubHub a US-based marketplace to rival viagogo, a Geneva-based, worldwide ticket marketplace for live sport, music and entertainment events.
- The acquisition, valued at $4.05 billion cash is expected to close by the end of the first quarter of 2020.
- Combined viagogo and Stubhub will sell hundreds of thousands of tickets daily, across more than 70 countries creating a global ticketing giant dominating the ticket resale market.
- Viagogo generates an estimated annual revenue of $73 million.
Stubhub co-founder Eric Baker left the company before it was sold to eBay in 2007 for $310 million. Interestingly, he is the founder and current CEO of viagogo. This acquisition now finds both companies back with the original founder.
“It has long been my wish to unite the two companies. I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared future,” Baker said. “Buyers will have a wider choice of tickets, and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans – more choice and better pricing,” he added.
The deal, set to close in the first quarter of 2020 is expected to give fans seamless access to a wider selection of inventory around the world, while sellers, teams, and artists will have the ability to more effectively reach a broader global audience.
“We believe this transaction is a great outcome and maximizes long-term value for eBay shareholders,” said Scott Schenkel, interim chief executive officer of eBay Inc. “Over the past several months, eBay’s leadership team and Board of Directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub. We firmly believe in the StubHub business and we are excited about its future growth potential with viagogo as its owner.”
According to Grand View Research Inc. in 2017, the online event ticketing market was valued at $46.6 billion and is expected to reach $68 billion by 2025.