StubHub, a prominent online ticketing service, has decided to postpone its potential initial public offering (IPO) until after Labor Day due to stagnant market conditions. The company had been aiming for a valuation of at least $16.5 billion for its IPO, but the lack of major consumer IPOs in recent months has made it challenging to gauge investor appetite.
StubHub has been working with JPMorgan and Goldman Sachs on the IPO for the past two years, but the company declined to comment on the latest developments. Founded in 2000, StubHub was purchased by eBay in 2007 for $310 million, only to be reacquired by its co-founder Eric Baker in 2020 for $4 billion through his new company Viagogo.
Meanwhile, rival online ticketing service SeatGeek is also evaluating a potential IPO this year, with Citigroup and Wells Fargo joining Morgan Stanley on the company's planned listing. SeatGeek is reportedly seeking a valuation above $1.35 billion for its IPO.
If StubHub does go public, it will trade alongside competitors like Vivid Seats and Live Nation. Vivid Seats has a market cap of $1.5 billion, while Live Nation is valued at just under $23 billion. The live events marketplace has seen significant growth in the wake of the Covid-19 pandemic, with record-breaking concert ticket sales driving revenues for ticketing companies.
Overall, the decision by StubHub to delay its IPO reflects the current uncertainty in the market, as companies assess investor interest and market conditions before making significant financial moves. It remains to be seen how the IPO landscape will evolve in the coming months and how StubHub and its competitors will navigate the changing dynamics of the live events industry.