Eric Baker: The StubHub IPO Journey

StubHub's Public Debut and Founder's Journey

StubHub, a prominent ticket reseller, initiated its journey on the public market on Wednesday. Despite its shares concluding the day 6% below the initial public offering (IPO) price of $23.50, the company was valued at over $7 billion. This public listing underscores the enduring dedication of its co-founder over several decades.

Early Beginnings and Initial Challenges

Eric Baker, the current CEO of StubHub, established the company alongside Jeff Fluhr in 2000. This occurred while both were students at the Stanford Graduate School of Business. The venture began shortly following the bursting of the dot-com bubble and the subsequent Nasdaq crash, yet the pair remained resolute.

Baker reflected in a 2022 podcast with Bessemer Venture Partners, stating that the failure of competitors created opportunities for building sustainable businesses after the market downturn.

Internal Disagreements and a New Venture

As the business expanded in the following years, Baker and Fluhr encountered differing visions for the company’s future. Consequently, Baker was removed from his position within the company in 2004.

The subsequent year saw Baker establish Viagogo, a European equivalent of StubHub, after relocating to London. Developing Viagogo presented its own set of obstacles, but Baker harbored aspirations of eventually merging it with StubHub.

Reacquisition and the Impact of COVID-19

In 2019, when eBay decided to divest StubHub – having acquired the ticket seller in 2007 – Baker capitalized on the situation. He secured financial support from investors, including WestCap, Madrone Capital Partners, and Bessemer Venture Partners, and successfully repurchased the company for $4.05 billion.

Immediately following the completion of the merger, the COVID-19 pandemic emerged. The cancellation of live events and the implementation of global quarantines led to a substantial decline in the company’s revenue.

Recovery and Growth

The company persevered through the challenging period. When live events resumed, StubHub experienced significant revenue growth. This was largely fueled by exceptionally popular events such as Taylor Swift’s Eras Tour, Beyoncé’s Renaissance World Tour, and the Super Bowl.

In the first quarter of 2025, StubHub reported a 10% increase in revenue, reaching $397.6 million compared to the same period in the previous year.

Looking Ahead

In his founder’s letter included in the S-1 filing, Baker expressed his amazement at the company’s progress. He highlighted the successful navigation of numerous hurdles, including the unprecedented disruption caused by COVID-19, which halted live events in 2020.

According to the S-1 documentation, Baker currently holds a 4.7% stake in the company. StubHub’s investors – Madrone Partners, WestCap, and Bessemer Venture Partners – collectively own 24.5%, 12.3%, and 8.8% of the company, respectively.