StubHub's rocky IPO: Stock falls on debut despite $800M raise!

2025-09-17 18:00:40.65

StubHub, the ticket marketplace, debuted on the New York Stock Exchange (NYSE) with its stock symbol "STUB." The IPO offered over 34 million shares, raising approximately $800 million at an initial price of $23.50 per share. However, the stock fell 2% shortly after trading began, giving the company a market valuation of about $8.6 billion. StubHub plans to use the proceeds to pay down debt and for general corporate purposes. Founded in 2000 by current CEO Eric Baker, StubHub was acquired by eBay in 2007, with Baker later founding Viagogo. In 2020, eBay sold StubHub to Viagogo, effectively returning it to Baker, who renamed the combined entity StubHub Holdings. The company operates in over 200 countries and territories, facilitating the purchase of more than 40 million tickets in 2024. Despite its size and global reach, StubHub reported only a 3% revenue increase to $827 million in the first half of 2025 compared to the same period in 2024, a slowdown from the 29% jump in 2024. This contrasts with Live Nation's (which owns Ticketmaster) 1.8% revenue increase to nearly $23.2 billion in 2024. StubHub faces criticism regarding hidden fees and inflated prices, with lawsuits filed in Washington, D.C., and inquiries in Pennsylvania and New York. The rising cost of tickets, increasing 5.2% in 2024 and 6.8% in 2023, exceeding overall inflation, further fuels these concerns. The IPO comes amidst a strong year for the IPO market, with other notable debuts including Figma, Klarna, Circle Internet Group, and Gemini.