Stubhub Sold To Founder For $4.05 Billion
Eric Baker, CEO of Viagogo and founder of stubhub, recently purchased Stubhub.
The ticket resale company was sold by eBay inc. in a $4.05 billion deal. Baker started Stubhub nearly 20 years ago. Baker had disagreements with his co-founder while working at Stubhub and left the company. The board of directors were also in agreement that Baker should leave.
Baker had planned to take some time off after his departure from Stubhub. However, while in Europe he realized that there was no Stubhub equivalent there. This led to him starting Viagogo.
The idea behind Stubhub came to Baker when he was planning a trip with his then-girlfriend to New York. He was trying to get tickets to see a show on Broadway and found difficulty in doing so quickly and at a reasonable price.
“You had to pay through the nose or find people on the street corner to purchase from,” said Baker.
There was initial backlash at Stubhub. Sports teams and music venues did not like the fact that Stubhub would in effect be legitimizing ticket scalping. However, once two Major League Baseball teams had partnered with Stubhub, others soon followed suit.