Eric Baker’s Journey to Launching StubHub’s IPO
Ticket reseller StubHub made its public debut on Wednesday, with shares closing at $22.05, a 6% drop from its initial public offering price of $23.50. Despite this setback, the company is valued at over $7 billion, marking a significant milestone for co-founder Eric Baker, whose journey reflects years of perseverance and strategic pivots in the face of adversity.
Founding and Early Challenges
StubHub was co-founded in 2000 by Eric Baker and Jeff Fluhr while they were students at the Stanford Graduate School of Business. This was a tumultuous time, following the burst of the dotcom bubble and the subsequent crash of the NASDAQ. Despite the challenging environment, Baker and Fluhr remained committed to their vision. Baker noted in a 2022 podcast that the downturn eliminated many competitors, allowing them to build a sustainable business. However, as the company began to grow, differences in vision led to Baker’s departure in 2004.
After leaving StubHub, Baker moved to London and established Viagogo, a European counterpart to StubHub. Although he faced numerous challenges while growing Viagogo, Baker always envisioned a merger with StubHub. This dream became a reality in 2019 when eBay, which had acquired StubHub in 2007, decided to spin it off. Baker seized the opportunity, securing investment from firms such as WestCap and Bessemer Venture Partners to purchase StubHub for $4.05 billion.
Impact of the COVID-19 Pandemic
Just as Baker completed the merger, the COVID-19 pandemic struck, leading to widespread cancellations of live events and a significant drop in revenue for StubHub. The company faced a critical period as global quarantines took effect, and the live events industry came to a standstill. However, StubHub managed to navigate through this challenging time. As restrictions eased and live events resumed, the company experienced a remarkable rebound in revenue, driven by high-demand events like Taylor Swift’s Eras Tour and Beyoncé’s Renaissance Tour.
In the first quarter of 2025, StubHub reported a 10% increase in revenue, reaching $397.6 million compared to the same period the previous year. This resurgence highlights the company’s resilience and ability to adapt to changing market conditions.
Looking Ahead
Reflecting on the company’s journey, Baker expressed amazement at the progress made since its inception. In his S-1 founder’s letter, he acknowledged the numerous challenges faced, particularly the unprecedented impact of the COVID-19 pandemic, which halted live events in 2020. As StubHub prepares for its future, Baker holds a 4.7% stake in the company, while investors Madrone Partners, WestCap, and Bessemer Venture Partners own 24.5%, 12.3%, and 8.8%, respectively.
The public offering marks a new chapter for StubHub, as it aims to solidify its position in the competitive ticket resale market. With a strong recovery underway and a growing portfolio of events, the company is poised for continued growth in the coming years.
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