StubHub Delays IPO Amid Market Uncertainty
- StubHub has decided to delay its initial public offering (IPO), which was initially targeted for this summer.
- The company was hoping for a valuation of at least $16.5 billion.
- This postponement suggests the company is reassessing its strategy in light of current market conditions.
StubHub, the prominent online ticketing service, has postponed its anticipated initial public offering (IPO) until after Labor Day, as reported by sources familiar with the situation. Initially targeting a summer launch with a valuation of at least $16.5 billion, the company has faced stagnant market conditions that have hindered its plans. The lack of significant consumer IPOs in recent months has made it challenging to assess investor interest, prompting the delay. The company has been collaborating with financial giants JPMorgan and Goldman Sachs for the past two years in preparation for the IPO. Despite the setback, StubHub remains a significant player in the ticketing industry, having been established in 2000 and acquired by eBay for $310 million in 2007. It was later reacquired by co-founder Eric Baker in 2020 for $4 billion through his new venture, Viagogo. In the competitive landscape, rival SeatGeek is also considering an IPO this year, with reports indicating that Citigroup and Wells Fargo have joined Morgan Stanley in its efforts. SeatGeek is reportedly aiming for a valuation exceeding $1.35 billion. Should StubHub proceed with its IPO, it would join competitors Vivid Seats and Live Nation in the public market, with Vivid Seats currently valued at $1.5 billion and Live Nation at nearly $23 billion. The live events marketplace has seen significant growth post-COVID-19, driven by a surge in demand for out-of-home entertainment, highlighted by record-breaking ticket sales for major tours like Taylor Swift's and Beyoncé's.