Vivid Seats, an online ticket resale marketplace, is considering a sale following interest from potential buyers.
The Chicago-based company, which competes with StubHub and SeatGeek, has enlisted financial advisers to evaluate purchase offers, with several private equity firms expressing interest in acquiring the business, Bloomberg reported last week (December 30, 2024), citing people with knowledge of the matter.
The news sent Vivid Seats’ stock surging 20% on December 30, marking its largest single-day gain since going public. The surge brought the company’s market capitalization to USD $943 million. As of Friday (January 3), Vivid Seats’ market cap stood at $955 million.
The company went public via a merger with Horizon Acquisition Corp., a special purpose acquisition company (SPAC), in 2021.
That transaction valued Vivid Seats at approximately $1.95 billion, according to Bloomberg. Vivid Seats currently has an enterprise value of $1.19 billion, according to data from FactSet. However, the company’s shares have faced considerable pressure over the past year, declining by 40% before this recent uptick.
In the third quarter ended September 30, 2024, Vivid Seats’ net income plunged 43% to $9.2 million from $16 million the prior year. Revenue inched down 1% YoY to $186.6 million from $188.1 million. Vivid Seats CEO Stan Chia in November said “Demand remained robust in the third quarter, although we experienced a headwind from concert supply, including from venue and artist mix, that we believe to be temporary.”
Vivid Seats’ current ownership includes a substantial stake held by Eldridge Industries, led by Todd Boehly, which controls roughly 41% of the company’s Class A shares. Private equity firm GTCR also maintains a minority position in the business.
When reached for comment about the potential sale, Vivid Seats said it doesn’t comment on “rumors or speculation,” while a representative for buyout firm GTCR, which also owns a minority interest in the company, declined to comment, said Bloomberg. An Eldridge representative did not respond to requests for comment, the news outlet said.
The potential sale discussions come at a time when the ticketing industry continues to evolve, driven by technological advancement, changing consumer preferences and competition. It also adds to a wave of strategic moves in the ticketing industry.
Last year, StubHub was reported to be aiming for an initial public offering by late summer 2024, targeting a valuation of $16.5 billion. However, The Wall Street Journal reported that StubHub has pushed back its IPO plans due to weak market conditions.
Aside from Vivid Seats, another ticketing platform, DICE, was also reported to be considering a sale in July 2024.
Bloomberg reported at the time that DICE was in advanced talks to sell a significant stake in the company, potentially valuing it at “hundreds of millions of dollars.” SoftBank, one of DICE’s major investors, was reportedly keen to sell its stake.
In June, Germany-headquartered live music giant CTS Eventim completed its acquisition of Vivendi’s ticketing and festivals businesses, including the SeeTickets platform.
The transaction had a total enterprise value of about EUR €300 million (approx. USD $309 million at current exchange rates).
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