Viagogo acquires rival ticket reseller StubHub in US$4 billion deal

Secondary ticketing firm Viagogo has announced a US$4 billion deal to buy its rival StubHub, in the biggest ever transaction in the secondary ticketing market.

With eBay having been evaluating the future of its ticketing subsidiary over much of the past year, Viagogo said the deal will unite the two businesses which “share the same fundamental principle of providing a secure platform for people to buy and sell tickets to live events”.

Advising that the deal will mean more choice and better prices for ticket buyers, Viagogo Managing Director, Cris Miller (pictured below) told the BBC the two companies are "pretty perfect complementary businesses."

The acquisition means Eric Baker, Viagogo’s Chief Executive, will be reunited with StubHub, which he co-founded but left before its sale to eBay for US$310 million in 2007.

Baker said that it had "long been my wish to unite the two companies", noting "I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared futures.

"Buyers will have a wider choice of tickets, and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans - more choice and better pricing."

The deal comes after the UK's competition authority suspended legal action against Viagogo after it made changes to the way it operates.

In September, Viagogo amended the way it presents information to customers which the UK Competition and Markets Authority (CMA) said meant the website was now "worlds apart" from the one that prompted the legal action.

The CMA had asked operators such as Viagogo to improve the information they provided about tickets, such as the risk a buyer would be turned away at the door, which ticket they were getting, and the availability and popularity of tickets.

Speaking to the BBC, Miller acknowledged the controversies surrounding and did not rule out StubHub becoming the preferred brand, commenting “the reality is we don't know quite yet.”

StubHub has a bigger presence in the US than Viagogo, which is better known in the UK and other parts of the world.

He added “we, at Viagogo, have made a considerable amount of changes to the website, have addressed a considerable amount of the concerns that regulators have seen over the world ... so it remains to be seen. Certainly, we have a lot to learn from (StubHub)."

In its own statement, eBay explained the reason for the sales, and why it would be beneficial for the sector.

eBay advised “combined, these complementary marketplaces will sell hundreds of thousands of tickets daily across more than 70 countries, giving fans seamless access to a wider selection of inventory around the world, while sellers, teams and artists will have the ability to more effectively reach a broader global audience.”

The sale is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.

In September, The Australian newspaper reporting that Silver Lake Partners, which subsequently purchased Australia’s TEG, was looking to acquire StubHub.