Core Viewpoint - StubHub is preparing for an IPO with a valuation of $8.6 billion, reflecting a 7% decrease from previous estimates, amidst various business challenges and competitive pressures [3][10]. Company Overview - Founded in 2000, StubHub operates a marketplace for live event tickets, selling over 40 million tickets from at least 200 countries in 2024 [6]. - The company has experienced ownership changes, initially sold to eBay for $310 million in 2007 and later repurchased by co-founder Eric Baker for $4 billion in 2020 [8]. Financial Performance - For the first half of 2025, StubHub's revenue grew by 3% to $828 million, a significant slowdown from a 30% growth in 2024 [7]. - The company reported a net loss of $76 million in the first half of 2025, a 217% increase in losses compared to previous periods [7]. Valuation and Market Position - StubHub's IPO valuation has fluctuated, with attempts to go public at $16.5 billion in 2024 and a recent target of $9.2 billion, which was reduced by 7% [10]. - The company faces a potential valuation drop to between $4 billion and $6 billion within 12 months due to regulatory and competitive pressures [5]. Business Challenges - StubHub is facing significant consumer complaints regarding high fees and poor customer service, with a Net Promoter Score of -100 and an F rating from the Better Business Bureau [13]. - Regulatory scrutiny is increasing, particularly concerning "junk fees" and all-in pricing, which could impact revenue models and growth [13]. - The company carries $2.38 billion in long-term debt, leading to high leverage ratios that may pressure financial stability [13]. - StubHub's dual-class share structure allows CEO Eric Baker to retain 90% voting control, raising concerns about shareholder interests [13]. - Compared to rivals, StubHub is considered overvalued at 4.9 times its 2024 revenue of $1.77 billion, while competitors like Vivid Seats trade at 0.59 times revenue [13].

Company Overview - StubHub, a ticketing marketplace that separated from eBay in 2020, is planning to go public with an IPO expected next month [1] - The company had previously paused its IPO plans in April due to market volatility caused by tariffs [1] - StubHub submitted its IPO prospectus in March, aiming to list on the New York Stock Exchange under the ticker "STUB" [1] Financial Performance - In the first quarter, StubHub reported revenue growth of 10% year-over-year, reaching $397.6 million [2] - Operating income for the same period was $26.8 million, a recovery from a loss of $883,000 in the previous year [2] - However, the net loss widened to $35.9 million from $29.7 million a year ago [2] Market Context - The IPO market has seen a resurgence recently after a period of stagnation due to high inflation and rising interest rates [3] - Several startups have gone public, indicating a more favorable environment for IPOs [3] Historical Background - StubHub was founded in 2000 and was acquired by eBay for $310 million in 2007 [4] - The company was reacquired by co-founder Eric Baker in 2020 for $4 billion through Viagogo [4] - Prior to the IPO process, StubHub sought a valuation of $16.5 billion [4] Competitive Landscape - StubHub faces significant competition in the online ticketing market, particularly from Ticketmaster, Vivid Seats, SeatGeek, and TicketNetwork [5] - For the first quarter, StubHub reported gross merchandise sales (GMS) of $2.08 billion, reflecting a 15% increase year-over-year, though this was a slowdown from 47% growth in the previous quarter [5] - GMS represents the total value paid by buyers for tickets and fulfillment, with initial sales for major concert tours typically occurring towards the end of the year [5]