StubHub: The Evolution of the Online Ticket Resale Marketplace
Founded on the frustration of trying to secure Broadway tickets, StubHub has grown from a Stanford graduate school project into one of the most influential forces in the event ticketing industry. By creating a dedicated online marketplace for secondhand tickets, the company fundamentally changed how fans access live sports, music, and theater across North America and beyond.
Key Facts
- Founded: March 2000 in San Francisco by Eric Baker and Jeff Fluhr.
- 2024 Revenue: US$ 1.77 billion.
- Major Acquisitions: Sold to eBay in 2007 (US$ 310 million); repurchased by Viagogo in 2020 (approx. US$ 4 billion).
- Public Status: Became a public company via IPO in September 2025.
- Core Service: Online secondary marketplace for event ticket sales.
Founding and Early Growth
The concept for StubHub was born when co-founder Eric Baker struggled to find secondhand tickets for The Lion King on Broadway. While studying at the Stanford Graduate School of Business, Baker and Jeff Fluhr developed the idea as part of a competition. They incorporated the company in San Francisco in March 2000, securing US$ 600,000 in seed funding by August of that year.
The company's early years were marked by rapid expansion and strategic partnerships, including its first professional sports deal with the Seattle Mariners in 2001. By 2005, StubHub achieved positive cash flow with approximately US$ 50 million in revenue. During this period, the company actively lobbied for legislative changes in Florida, Pennsylvania, and New York to modify laws regarding the resale of tickets above face value.
However, internal disagreements over company direction led to a split in 2004. While Jeff Fluhr focused on brand building, Eric Baker advocated for deeper partnerships with sports leagues. This disagreement resulted in Baker leaving the company, though he retained a 10% stake and later founded the European competitor Viagogo in 2006.
The eBay Era and Market Expansion
In 2007, eBay acquired StubHub for US$ 310 million. Under eBay's ownership, the platform scaled massively, selling approximately US$ 5 billion in tickets annually by 2008. This era saw the introduction of all-in pricing—a system where all fees are included in the initial seat selection price—which StubHub standardized in 2013 before reversing the policy in 2015 due to declining sales.
The company's growth was not without conflict. StubHub faced legal battles with the New England Patriots over Massachusetts resale laws and saw the New York Yankees revoke season tickets from users who resold seats on the platform. Despite these hurdles, StubHub secured a landmark partnership with Major League Baseball in 2007 to become the league's official online ticket reseller.
Technological integration became a priority in the mid-2010s. StubHub introduced PayPal integration for Android, personalization algorithms, and mobile barcodes for venue entry. It also formed strategic partnerships with Uber, Spotify, and Amazon Echo to streamline the fan experience from discovery to transportation.
Return to Viagogo and Public Offering
In a full-circle turn of events, Viagogo—the company founded by former StubHub executive Eric Baker—purchased StubHub in February 2020 for approximately US$ 4.05 billion. The timing of the deal proved catastrophic; the COVID-19 pandemic struck shortly after the acquisition, causing the company to lose roughly 90% of its revenue.
Following the pandemic recovery, StubHub Holdings pursued a public listing. After several delays in 2022 and 2024, the company successfully launched its initial public offering (IPO) in September 2025.
Legal Challenges and Regulatory Issues
Recent years have brought significant legal scrutiny. In 2026, the company faced a US$ 5 million class action lawsuit in Manhattan Federal Court and a separate suit in British Columbia, Canada, after customers reported receiving invalid or missing tickets for the 2026 FIFA World Cup.
Additionally, the UK's Competition and Markets Authority (CMA) fined StubHub UK nearly £900,000 in June 2026. The fine was issued due to drip pricing, the illegal practice of hiding the full price of a ticket until the final stages of the booking process, and the company was ordered to refund over 50,000 customers.
| Period/Year | Ownership/Status | Key Event/Financials |
|---|---|---|
| 2000 | Private (Founders) | Founded in San Francisco |
| 2007 | eBay | Acquired for US$ 310 million |
| 2020 | Viagogo / StubHub Holdings | Acquired for approx. US$ 4 billion |
| 2024 | StubHub Holdings | Revenue of US$ 1.77 billion |
| 2025 | Public Company | Initial Public Offering (IPO) |
Frequently Asked Questions
Who founded StubHub and why?
StubHub was founded in March 2000 by Eric Baker and Jeff Fluhr. The idea originated from Baker's difficulty in finding secondhand tickets for a Broadway production of The Lion King.
What is "all-in pricing"?
All-in pricing is a pricing structure where all service fees are included in the ticket price shown at the time of seat selection, rather than being added at the end of the checkout process.
What is "drip pricing" and why was StubHub fined for it?
Drip pricing is the practice of not showing the full price of a service at the start of the booking process. StubHub UK was fined nearly £900,000 by the CMA for this practice in 2026.
How did the COVID-19 pandemic affect StubHub?
The pandemic occurred immediately after Viagogo's US$ 4 billion acquisition of the company, leading to a loss of approximately 90% of its revenue.
Is StubHub a public company?
Yes, StubHub Holdings became a public company following its initial public offering (IPO) in September 2025.