StubHub IPO Is Inching Forward as Major Bank Discussions Are Reportedly Happening—Offering Could Happen As Early As Next Month

when will Stubhub IPO happen
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when will Stubhub IPO happen
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Photo Credit: StubHub

A new report from Bloomberg suggests StubHub is working closely with various banks on its planned IPO—which could launch as early as next month.

The report suggests deliberations surrounding the IPO are still ongoing, with no final decisions made yet. Previous reports surrounding the potential IPO suggested StubHub could seek to get a valuation of around $16.5 billion based on calculations made in 2021 when the secondary ticketing market last raised funding. StubHub had a reported $350 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).

While StubHub moves closer to its IPO, the secondary ticketing market was the subject of several lawsuits this year. In January, plaintiff Brian Hong brought a lawsuit against the ticketing giant alleging that StubHub intentionally misleads customers about ticket prices on its website and app through its ‘Estimated Fees Filter.’

The complaint alleges that StubHub purposefully and consistently understates the estimated fees for tickets, resulting in higher-than-expected costs at checkout. Brian Hong and his counsel conducted more than 100 ticket selection experiments on the StubHub website to gather evidence. StubHub understated the total cost of every single ticket selected by an exact amount of $3 per ticket.

The lawsuit alleges StubHub of violated several laws including California’s Ticket Sale Law, Unfair Competition Law, Consumers Legal Remedies Act, and False Advertising Law.

“StubHub is not estimating anything. It is misrepresenting the price it claims it can cause tickets to be delivered to customers by a consistent amount,” the complaint reads. “Worse yet, this bait and switch is made even more deceptive by the fact that the price increases only at the final checkout screen, after the customer is put on a prominently displayed 10-minute shot clock to review over a half dozen cluttered screens that inundate them with colorfully distracting information.”

StubHub also faced another lawsuit from Spotlight Ticket Management in May 2024 on claims that StubHub breached contact, tortious interference with contract, and prospective economic advantage. StubHub paid significant commission to Spotlight for sales it drove to the site through its corporate business partners, including a relationship with American Express. StubHub agreed to pay Spotlight a 7% commission on all purchases sent to StubHub by Spotlight.

But Spotlight says StubHub often failed to pay on tickets purchased by Amex because of “software tracking issues” or other excuses. StubHub’s senior management executed a scheme to provide false and misleading information about Spotlight to Amex—intended to ruin the corporate partnership. After a month-long trial in Los Angeles, a jury sided with Spotlight and forced StubHub to pay $3 million over the commissions; $5.3 million for the lost Amex partnership; and $8.1 million from Amex earnings had the partnership continued.