eBay acquires controversial StubHub, an online ticket reselling market
StubHub, an online ticket reselling market not too different from eBay, has made it through its legal troubles with sports teams (for the time being). Several sports teams encourage their fans to use the service, but others, like the New England Patriots, aren’t so fond of it due to its scalping-like nature.
eBay has just announced plans to acquire StubHub for $310 million. For years, the service has been skimming people away from eBay, and bringing them into an all-tickets, all-the-time atmosphere - which is exactly what sports-fans were looking for. Now, eBay has done what most major companies would do (or at least try to do), and bought up their competition.
StubHub was founded back in 2000 by Fluhr and Baker (pictured above) and made $100 million in revenue just last year. Sounds like a wise investment on the part of eBay.
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Good for corporate business, bad for innovation.
on January 17, 2007 at 06:21 PM - LINKStubHub only is in a legal dustup with ONE team - our Pats. They are partners with practically every other team, including the Colts and the Bears. Is it just me or doesn’t it strike you as humorous that many Pats fans are getting into this weekend’s road game using StubHub?
on January 18, 2007 at 11:09 AM - LINKeBay has dcided to pay $310 million for a site that will be effectively obselete.
StubHub only has deals with a handful of teams, not most as one reader suggests. After the technology I write about below is employes, this is all the business StubHub will be left with… maybe enough to generate $8 million a year!
Ticketing companies are in talks with a technology firm that eliminates scalping. Period.
I would sell my eBay stock.
on January 22, 2007 at 05:41 AM - LINKJeremy Bayard
TicketLife.com
Gee Jeremy, i wonder what the technology firm is that will ‘eliminate’ scalping. OH, that’s right-it’s ticketsage where you work.
Good luck with your product but i’m going to double down on ebay and short ticketsage-IF it ever makes it out of tiny arkansas venues.
on January 27, 2007 at 08:35 PM - LINK