StubHub

StubHub is an American ticket exchange and resale company. Founded in 2000, it operates as a marketplace where users can buy and sell tickets for sports, concert, theater, and other live entertainment events. The company pioneered a model that guaranteed transactions, aiming to reduce fraud in the secondary ticket market. It was acquired by eBay in 2007 and later became a subsidiary of its rival, Viagogo, in 2020.

History

The company was founded in San Francisco in 2000 by Eric Baker and Jeff Fluhr, who identified a need for a secure, centralized marketplace for ticket resale. Its early growth was fueled by partnerships with major entities like the National Football League and numerous Major League Baseball teams. In a significant move for the e-commerce sector, the online auction giant eBay acquired the company in 2007 for approximately $310 million. Under eBay's ownership, it expanded internationally, establishing operations in Canada and the United Kingdom. In February 2020, eBay announced the sale of the company to its Swiss-based competitor, Viagogo, for $4.05 billion, a deal that closed later that year amidst the global disruptions caused by the COVID-19 pandemic.

Business model

The platform operates as a two-sided marketplace, connecting sellers with buyers. Sellers list tickets, often using tools like barcode uploads from primary sellers such as Ticketmaster, and set their own prices, which can be above or below face value. The company charges sellers a commission fee, typically a percentage of the sale price, and buyers pay a separate service fee on top of the ticket price. A core feature is its **FanProtect Guarantee**, which promises buyers valid tickets for entry and on-time delivery, while guaranteeing sellers payment. This model contrasts with the primary market controlled by companies like Live Nation Entertainment and AXS.

Legal and regulatory issues

The company has faced numerous legal challenges concerning its operations in the secondary ticket market. It has been involved in lawsuits and settlements with several state attorneys general, including those from New York and Massachusetts, over issues like the disclosure of fees and speculative ticket listing practices. Regulations governing ticket resale vary significantly by jurisdiction; for instance, laws in New York and Illinois have mandated clearer fee transparency. The company has also been a party to high-profile litigation, including a case brought by Pearl Jam's management company, Ten Club, and a class-action lawsuit related to the canceled Fyre Festival.

Impact on the ticketing industry

The platform significantly democratized and legitimized the secondary ticket market, moving it from informal channels like street corners and classified ads into a mainstream, digital e-commerce environment. Its success pressured primary ticketing companies, notably Ticketmaster, to develop and acquire their own resale platforms, such as Ticketmaster Resale and SeatGeek. The company's pricing model, which allows dynamic pricing based on demand, has influenced how the entire industry views ticket valuation, contributing to the widespread adoption of variable pricing strategies by leagues like the National Basketball Association and promoters like AEG Presents.

Acquisition by Viagogo

The acquisition by its long-time rival Viagogo, founded by StubHub co-founder Eric Baker, created one of the world's largest ticket marketplaces. Announced in November 2019, the $4.05 billion all-cash deal was scrutinized by competition regulators, including the Competition and Markets Authority in the United Kingdom, which initially expressed concerns over reduced competition. The merger was ultimately approved in 2021 after the companies agreed to sell part of Viagogo's international business to a competitor, Edinburgh-based TicketSwap. The combined entity operates under the StubHub brand in North America and the Viagogo brand elsewhere.