Breaking Down the StubHub IPO: Key Details, Risks, and Market Impact

To fully appreciate the magnitude of StubHub’s IPO, it helps to understand where it all started.

Founded as Viagogo in 2006 by Eric Baker, who had also co-founded StubHub before its original sale to eBay, this company always had big ambitions. In 2020, Viagogo completed its acquisition of StubHub from eBay for $4.05 billion in cash, reuniting Baker with the brand he helped build. The merger brought together two of the largest names in the secondary ticketing space, creating a global powerhouse.

In 2021, the combined entity was renamed StubHub Holdings, Inc., and since then, it's been gearing up for a major move. Filing for an IPO in March 2025, StubHub aims to capitalize on the revival of live entertainment and its position as a dominant player in ticket resale.

Key Details About the StubHub IPO

The Form S-1, filed with the SEC on March 21, 2025, sets the stage for StubHub’s long-awaited entry into the public market. Here are the major highlights:

• Company Name: StubHub Holdings, Inc.

• Stock Symbol: STUB

• Exchange: New York Stock Exchange (NYSE)

• Class of Shares Offered: Class A Common Stock

• Estimated Price Range: To be determined

• Lead Underwriters: J.P. Morgan, Goldman Sachs & Co. LLC, BofA Securities, Evercore ISI, and others

Though the number of shares and the final price range have not been disclosed, the IPO will involve a traditional underwritten offering, and shares are expected to start trading shortly after regulatory approval.

The IPO represents not just a funding event, but a significant pivot as StubHub moves toward a more transparent, public-facing structure while still retaining strong founder control.

Dual-Class Stock Structure: Control in the Hands of One

StubHub will issue two classes of stock: Class A and Class B. Here’s what that means:

• Class A Common Stock: Public investors will own this class. It comes with one vote per share.

• Class B Common Stock: This is exclusively held by CEO Eric Baker. Each share carries 100 votes.

This setup ensures Baker maintains overwhelming control of the company, likely more than 90% of the voting power post-IPO. It also means that shareholders purchasing Class A stock will have very limited influence over corporate governance.

While dual-class structures are common in Silicon Valley and among founder-led firms like Meta or Alphabet, they’re controversial. Critics argue they give too much unchecked power to individuals, while supporters say they protect long-term vision from short-term market pressures.

For StubHub, this means Eric Baker can essentially run the company without needing broader shareholder approval, at least for now.

What Will StubHub Do With the IPO Money?

Although exact figures are pending, the S-1 reveals that StubHub intends to use proceeds for:

• General corporate purposes

• Working capital

• Capital expenditures

• Potential strategic acquisitions

• Debt repayment (if applicable)

This is a pretty standard use-of-proceeds outline. However, the mention of acquisitions hints at StubHub’s continued desire to expand or diversify its platform, potentially moving into adjacent tech, data, or live experience verticals.

Additionally, underwriters have a 30-day option to buy more shares, which could boost the offering size if demand runs high.

The Business Model: How StubHub Makes Money

StubHub generates revenue by charging service and delivery fees on each ticket sold through its platform. These fees are applied to both the buyer and the seller, making it a highly scalable business model.

Key revenue drivers include:

• Transaction volume from ticket sales

• Dynamic pricing tools

• Premium placement for sellers

• Partnerships with event organizers and venues

The platform operates globally, though North America and Europe remain its core markets. With the return of live concerts, sports, and festivals, the total addressable market is massive and is estimated to exceed $80 billion annually across primary and secondary ticketing.

Leadership Spotlight: Eric H. Baker

Eric Baker, CEO and founder, is no stranger to the ticketing world. He co-founded StubHub in 2000, sold it to eBay in 2007, then went on to build Viagogo. His journey has now come full circle.

Baker’s deep knowledge of the market, coupled with his firm control of the company, positions him as a central figure in its future. While that consistency might comfort investors looking for stable leadership, others may be wary of the level of control embedded in the company’s structure.

It’s also worth noting that StubHub’s board could lack the same level of independence expected at other public companies, due to its “controlled company” status.

Risks and Challenges

Going public doesn’t eliminate risks. In fact, it often highlights them.

Here are some key concerns from the S-1 risk factors section:

• Intense competition: From Ticketmaster to SeatGeek, the ticketing space is crowded. Competitive pricing and exclusive partnerships can drive platform loyalty elsewhere.

• Regulatory pressure: Countries like the UK and parts of the US are tightening rules around secondary ticketing. StubHub must stay ahead of changing laws.

• Dependence on event-driven revenue: If concerts and games are canceled due to pandemics, economic downturns, or social unrest, StubHub's revenue could dry up quickly.

• Reputation risks: As a resale platform, StubHub often deals with unhappy buyers or sellers. One high-profile misstep could damage trust and brand equity.

• Technology and security: Any major system downtime or data breach could lead to user loss and legal exposure.

Investors should read the full "Risk Factors" section, starting on page 24 of the S-1 filing, to fully understand the landscape.

Investor Sentiment and Analyst Buzz

There’s already chatter in the market that StubHub’s IPO could be a bellwether for post-pandemic consumer demand. Some analysts view the listing as a strong vote of confidence in the recovery of live entertainment. Others are watching the valuation closely, especially given the company's recent past as a private entity and its acquisition history.

A big open question is whether the company will be valued more like a tech firm with high growth multiples or like a traditional consumer marketplace.

Either way, investor interest appears to be heating up, especially among those who missed out on early opportunities with platforms like Eventbrite or Live Nation.

Wrapping It Up

StubHub’s IPO is a moment of truth for the live events industry. As the world returns to concerts, games, and theater, StubHub wants to be the go-to destination for secondary ticketing and this IPO could help fuel that ambition.

With its brand recognition, global presence, and battle-tested leadership, the company certainly has the ingredients for public market success. But the dual-class structure and reliance on a single executive’s control are factors worth considering.

For retail investors, this IPO could offer a front-row seat to the next phase of digital ticketing. Just make sure you’re holding the right ticket before jumping in.

FAQs About the StubHub IPO

When is the StubHub IPO happening?

The company filed with the SEC in March 2025. While no exact date has been set, the offering is expected shortly after regulatory clearance.

How can I buy StubHub stock?

Once listed, you’ll be able to buy shares of "STUB" through any brokerage that offers NYSE access.

What is the significance of the Class A and Class B shares?

Class A shares are for the public and carry one vote each. Class B shares, held solely by the CEO, carry 100 votes each and ensure control stays with the founder.

Will StubHub pay dividends?

According to its prospectus, the company does not currently plan to pay dividends. It intends to reinvest earnings back into growth.

Should I invest in the StubHub IPO?

That depends on your risk tolerance and belief in the long-term potential of live entertainment. IPOs are volatile, and StubHub’s governance structure may not appeal to every investor.

What’s the company’s financial health?

While detailed financials are included in the full S-1, StubHub is emphasizing growth over immediate profitability. Due diligence is key.

Stubhub IPO

Stubhub IPO

Financial Disclaimer

This article is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Investing in IPOs involves significant risks, including the potential loss of capital. Always conduct your own research or consult with a certified financial advisor before making investment decisions.