StubHub (STUB), the global ticketing marketplace that connects fans to live events, made its debut on the New York Stock Exchange today. The company raised $800 million in its long-awaited initial public offering (IPO) and landed a valuation of $8.6 billion. The company priced its shares at $23.50, which was the midpoint of its targeted range.
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StubHub operates in over 200 countries and offers tickets to everything from Premier League matches to Taylor Swift concerts. While it is best known for secondary ticketing, the company is expanding into primary sales through direct partnerships with artists and venues. A recent multi-year deal with Major League Baseball adds to its brand and reach.
Tumultuous Journey to the IPO
Founded by Eric Baker in 2000, StubHub was acquired by eBay (EBAY) for $310 million in 2007. Thirteen years later, Baker bought the company back for about $4 billion through his new venture, Viagogo.
StubHub’s IPO marks a major milestone after several years of delays. The most recent postponement came in April 2025, following market volatility due to President Donald Trump’s “liberation day” tariffs.
While the current valuation is notable, it is worth mentioning that StubHub initially aimed for a much higher valuation of $16.5 billion before it began the IPO process.
Financials and Regulatory Headwinds
According to its updated prospectus, StubHub’s first-quarter revenue rose 10% year-over-year to $397.6 million. The company also reported an operating income of $26.8 million, against the $883 million operating loss in the prior-year quarter.
However, its net loss widened slightly to $35.9 million from $29.7 million a year ago. Also, it carries $2.38 billion in long-term debt.
Importantly, StubHub faces criticism over its fee structure. The company has long used “drip pricing,” where fees of 30% to 40% are added at checkout, a practice that has drawn regulatory scrutiny. A recent settlement with California’s Attorney General required StubHub to refund $20 million to affected customers.
Further, new regulations, such as California’s upfront fee disclosure law and the FTC’s “junk fees” rule, could force StubHub to change its revenue model, potentially hurting its growth.
Moreover, its dual-class share structure gives CEO Eric Baker 90% voting control, raising questions about governance and long-term shareholder influence.
Is StubHub a Good Stock to Buy?
StubHub’s efforts to expand into primary ticketing and improve margins might support its long-term performance. However, its business model is heavily dependent on major concert tours, a factor it cannot control. Also, slowing growth, mounting losses, and intense competition may weigh on its valuation.