StubHub delays IPO until after Labor Day

StubHub is delaying a potential initial public offering until after Labor Day, according to a person familiar with the deal.

The online ticketing service had been eyeing a summer IPO, aiming for a valuation of at least $16.5 billion. However, stagnant market conditions have led the company to postpone its efforts. There haven’t been any major consumer IPOs in recent months and, therefore, it has been difficult to gauge investor appetite.

The company has been working with JPMorgan and Goldman Sachs over the past two years on the IPO, CNBC previously reported. StubHub declined to comment.

StubHub has been a longtime player in the ticketing industry since its launch in 2000. It was purchased by eBay for $310 million in 2007, but reacquired by its co-founder Eric Baker in 2020 for $4 billion through his new company Viagogo.

Online ticketing rival SeatGeek has also been evaluating a potential IPO this year, according to media reports. In early June, Bloomberg reported Citigroup and Wells Fargo joined Morgan Stanley on the company’s planned listing. The news outlet reported SeatGeek was seeking a valuation above $1.35 billion.

If StubHub does enter the public market, it will trade alongside competitors Vivid Seats and Live Nation. Vivid Seats has a market cap of $1.5 billion and Live Nation is valued at just under $23 billion.

The live events marketplace has bloomed in the wake of the Covid-19 pandemic, as people have gravitated toward out-of-home entertainment and experiences. Record-breaking concert ticket sales, such as those seen for Taylor Swift’s Eras Tour and Beyoncé’s Renaissance Tour, have fueled revenues for ticketing companies across the board.