Bending Spoons to Acquire Eventbrite for $500 Million

Eventbrite Acquisition by Bending Spoons

Bending Spoons, a firm specializing in the acquisition and revitalization of underperforming technology businesses, has reached an agreement to purchase Eventbrite for approximately $500 million.

This valuation represents a significant decrease compared to Eventbrite’s $1.76 billion valuation at the time of its initial public offering in 2018.

A Pattern of Revitalization

Similar to previous acquisitions made by Bending Spoons – including well-known names like Evernote, Meetup, Vimeo, and AOL – Eventbrite possesses a recognized brand identity.

However, according to verified financial statements, the company’s growth has stagnated.

Eventbrite’s History

Founded in 2006 by Julia and Kevin Hartz, alongside Renaud Visage, Eventbrite operated as a private entity for twelve years.

During this period, the company secured roughly $330 million in venture capital funding from prominent investors, such as Sequoia Capital and Tiger Global Management.

Bending Spoons’ Long-Term Strategy

Unlike conventional private equity firms, Bending Spoons adopts a strategy of perpetual ownership.

The company aims to restore profitability through measures like cost reduction, price adjustments, and the introduction of innovative product functionalities.

In October, Bending Spoons secured a substantial $270 million funding round, resulting in a company valuation of $11 billion.

The "Venture Zombie" Trend

Bending Spoons is not alone in pursuing this acquisition and revitalization model.

Other investors are also focused on acquiring, improving, and maintaining stalled software companies, often termed “venture zombie” companies.

These include firms like Constellation Software, Curious, Tiny, SaaS.group, Arising Ventures, and Calm Capital.

Focus on Profitability

Andrew Dumont, CEO and founder of Curious, explained to TechCrunch that their firm targets “great companies” available at reduced prices.

They then work to rapidly restore these businesses to achieve profit margins ranging from 20% to 30%.

Financial Details of the Deal

Eventbrite’s audited annual revenue remained consistent at approximately $325 million for both fiscal years 2023 and 2024.

Bending Spoons’ agreed-upon purchase price is roughly 1.7 times Eventbrite’s trailing twelve-month revenue of $295 million.

Despite this relatively low revenue multiple, Eventbrite shareholders are set to receive $4.50 in cash per share, representing an 81% premium over the previous day’s closing price of $2.48.