The UK's Competition and Markets Authority (CMA) has advised ticket resellers StubHub and Viagogo to halt any integration of the two businesses until it has finished investigating the proposed merger.
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The sale to Digital Fuel Capital LLC was approved by the UK Competition and Markets Authority and completed on 3 September
By IQ on 08 Sep 2021
Viagogo has sold its StubHub business outside of North America – including the UK – to investment firm Digital Fuel Capital LLC for an undisclosed sum.
The sale was approved by the UK Competition and Markets Authority (CMA) and completed on 3 September, after secondary ticketing giant Viagogo was forced to sell its international business due to competition concerns.
Viagogo acquired eBay’s ticketing division StubHub for $4.05 billion in cash in February 2020.
According to the CMA, a merger between the two companies would have resulted in a substantial lessening of competition in the secondary ticketing market, leading to higher prices and limited option for fans.
“We look forward to sharing more details about the integration of the two businesses”
Viagogo assuaged competition concerns by proposing the “divestment to an upfront buyer of StubHub’s European and certain other international legal entities”.
The sale of StubHub International to Digital Fuel Capital now brings the merger investigation to a close, says the CMA.
The Massachusetts-based investment firm will add StubHub International to its portfolio which consists of Artifact Uprising, Boutique Brands, BuyAutoParts, Guild Brands, National Tree Company, Outdoor Adventure Brands, Renovation Brands, RugsUSA, and Seattle Coffee Gear.
“We appreciate the CMA’s role in bringing the merger to this conclusion, and we look forward to sharing more details about the integration of the two businesses with our loyal customers and partners very soon,” says Cris Miller, VP of business development, Viagogo.
“Viagogo is a website with a long and storied history of breaking the law”
“As the live events industry emerges from the coronavirus pandemic, robust competition in the ticketing market is needed more than ever and Viagogo will continue to take its essential role in the live events industry very seriously. Viagogo and StubHub will always remain committed to working with regulators, while providing safe and secure platforms for people to buy and sell tickets to events all over the world.”
Adam Webb, campaign manager at FanFair Alliance, an anti-touting campaign group, says: “Good luck to Digital Fuel Capital. For their sake, I hope they didn’t pay very much.
“Viagogo is a website with a long and storied history of breaking the law and that’s dominated by large-scale touts and non-existent tickets.”
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