Stubhub is considering the idea of launching an initial public offering (IPO) in the summer, with a target amount of $16.5bn.
The digital ticketing service has been collaborating with JPMorgan and Goldman Sachs for the past two years, as reported by The Information.
Stubhub IPO
The growth of digital and online ticket sales has been consistent over the last decade, thanks to the increasing accessibility and portability of apps and online services for music and sporting events.
Having been a well-established brand for many years, Stubhub was valued at $16.5 billion in 2021. If they are considering another round of public funding, they would need to raise at least the same amount to demonstrate growth to investors over the past three years.
Founded in 2009, Stubhub quickly became a market leader in ticket buying in the US and has multiple international offices. Their “Deal Core” system has been instrumental in their successful business strategy.
Stubhub proudly proclaims on their website, “For over 20 years, StubHub has been the leading marketplace for fans to buy and sell tickets. Today, we continue to offer you peace of mind with our exclusive FanProtect Guarantee, best-in-class customer service, and product features that ensure we have your back. Combined with viagogo, we now span 90+ countries around the world.”
The success of companies like StubHub, Vivid Seat, Live Nation, and SeatGeek has been further boosted by the Covid-19 pandemic and the rapid growth of digital services.
After the pandemic, ticket prices for popular events have skyrocketed, as evidenced by Taylor Swift’s entry into the Forbes Billionaire list and her hugely successful Eras Tour.
Other players in the ticketing industry, such as SeatGeek ($1bn valuation), Vivid Seat ($1.2 billion valuation), and Live Nation ($24 billion valuation), are also thriving. Stubhub aims to surpass Live Nation as the leading player in the ticketing market, but further details on this potential deal with JPMorgan and Goldman Sachs are awaited.
JPMorgan and Goldman Sachs have not yet provided any official comments on their involvement with StubHub.
Image: Ideogram.
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