Posted on 01/11/2007 4:51:18 AM PST by lowbridge
EBay Inc. is buying rapidly growing online ticket broker StubHub Inc. for $310 million in cash, further expanding the Internet auctioneer's electronic bazaar.
The San Jose-based company announced the deal late Wednesday after the news had already been leaked to the media.
StubHub's sale, expected to close before April, punctuates another improbable Internet success story.
Jeff Fluhr, StubHub's 32-year-old co-founder and chief executive, launched the San Francisco startup against the dreary backdrop of the dot-com bust 6 1/2 years ago with another former student at Stanford Graduate School of Business, Eric Baker.
"StubHub's business model is an excellent fit with eBay, a company we've admired for a long time," Fluhr said in a statement. "StubHub exists to serve passionate fans and we feel great knowing our customers will benefit from the power of eBay and its community of users."
(Excerpt) Read more at wtopnews.com ...
StubHub operates an online market for reselling tickets to major events, creating an alternative market that has been thriving even as its existence incensed some of the sports teams whose tickets are being resold above their face value.
StubHub says buyers paid more than $400 million for tickets sold on its site in 2006, generating more than $100 million in revenue last year. People pay a 15 percent fee to sell tickets on the site, while the buyers are charged a 10 percent commission.
Since its inception, StubHub has brokered the sale of more than 5 million tickets.
Online scalpers.
Nothing wrong with that, mind you. But let's call 'em what they are.
I've had great luck with StubHub, often getting tickets at the last minute at face value for events like the Army-Navy game. I hope eBay doesn't mess with the formula.
I second that. StubHub has been a valuable resource in the past.
Anybody know how??
Ebay bought them, well prepare for 20% fees
Here is the problem with ebay - they are playing the role of monopolists. Did people like how they banned Google's Checkout tool from being used because it was "untested". Then it says it will cancel auctions and bans users who use it.
Why? Because people are fed up with paypal.
Okay: VERY RICH online scalpers :-)
I'm not positive but i think the word iBuy may be copyrighted.
The horror of American cowboy capitalism continues. After giving up six years of his life, selling tickets, this man only reaps 50 million dollars for each year lost. ( I'm not counting pay and compensation during those years of horror)
Sick.
If only we had an European social justice economy.
Poor guy.
(sarcasm/off)
No wonder they're raising their rates...again.
How about iBribe or iSteal?
Ebay ruined Paypal, what's going to be different now? /retorical
I just wifh E-Gay had some kind of real compitition. When they disallowed firearms, gunbroker and auctionarms stepped up, but there is no real alternative to general auction items.
Better make sure Cisco doesn't already own it.
Interesting site. Not sure what to make of it, but very interesting.
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