Ebay pays €165 million to acquire Spanish startup Ticketbits

Ebay pays €165 million to acquire Spanish startup Ticketbits B&WEBay has announced the acquisition of the Spanish company Ticketbis, the platform for buying and selling event tickets. This means that Ticketbis will become part of StubHub, the ticket resale website in the US.

The aim of the purchase is to increase the presence of StubHub in Latin America and Europe as well as to extend the business in Asia and the Pacific. The exact terms of the agreement have not been officially disclosed but sources close to Ticketbis Novobrief reveal that the purchase is around 165 million dollars.

Last March, the company announced its biggest ever turnover of 85 million euros, representing a 57% increase from 2014.

Devin Wenig, president and CEO of eBay, says, “The acquisition of Ticketbis allows us to significantly increase the international presence of StubHub. This agreement reaffirms our commitment to invest in StubHub and help boost its momentum.”

Scott Cutler, President of StubHub, says, “In a world where the richest moments in life are becoming less about the things people have and more about the experiences they have to share, the acquisition of Ticketbis will allow us to connect millions more people with inspiring events.”

Meanwhile Ander Michelena, co-founder of Ticketbis, explains the benefits of the sale to his company. “StubHub provides significant value to its customers and sellers of tickets worldwide. We are delighted to be part of the family of eBay, and hope to continue with our innovation in ticket sales.”

BORN IN THE USA

The personal online selling of unwanted tickets has been going on in the USA for more than 10 years but isn’t widely practiced in many other countries.

Ticketbis was one of the first companies outside of the US to adopt the model and make a success of it, making events all over the world more accessible. Founded in 2009, it is based in Bilbao and Madrid and in its first year beat all Spanish competitors in the market. It has remained ahead of the game there and is now also now also the biggest such company in Latin America and Southern Europe. It has a presence in 47 countries.

Europe accounts for most of the Ticketbis’ business as it was responsible for 52 per cent of the company’s turnover. Britain, Spain and Italy are the European countries that use it most.

ONLINE CONCERNS 

While online reselling offers a genuine service to those with tickets to an event they can no longer attend to able to connect to fans seeking tickets to sold out events and vice versa, there are widespread concerns of profiteering.

This is a conundrum the UK government has been juggling for some time as the practice has increased. It wants to clamp down on unscrupulous online touts but doesn’t want to penalize genuine sellers and fans.

There are guidelines but the debate goes on as to how exactly the market should be regulated. The balancing act is in finding a way to allow the practice to continue while at the same time not letting it completely fall into the hands of overpricing touts.

For more information, please contact corporate law firm Argali Abogados

 

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