Report: Vivid Seats fields acquisition offers

Online ticket reseller Vivid Seats is reportedly fielding acquisition offers from several private equity firms hoping to take the company private.

The Chicago-based company, which competes with SeatGeek and StubHub, has enlisted an advisory firm to help gauge interest in a potential sale, according to Bloomberg.

The news sent Vivid Seats’ stock surging 20% on 30 December, marking its largest single-day gain since going public. The hike brought the company’s market capitalisation to USD $943 million. As of Friday (3 January), Vivid Seats’ market cap stood at $955 million.

However, the company’s shares have faced considerable pressure over the past year, declining by 40% before this recent uptick.

In the third quarter of 2024, Vivid Seats’ net income plunged 43% to $9.2 million from $16 million the prior year. Revenue inched down 1% YoY to $186.6 million from $188.1 million.

The news sent Vivid Seats’ stock surging 20% on 30 December, marking its largest single-day gain since going public

CEO Stan Chia in November said, “Demand remained robust in the third quarter, although we experienced a headwind from concert supply, including from venue and artist mix, that we believe to be temporary.”

Vivid Seats was launched in 2001 by Jerry Bednyak and Eric Vassilatos as a competitor to resale platform StubHub and later Seat Geek – both of which have been sizing up a potential initial public offering.

In 2017, private equity firm GTCR acquired a majority stake in Vivid Seats. A year later, Bednyak and Vassilatos left the company and went on to launch venture group Skybox Capital.

In 2021, the company went public via a merger with Horizon Acquisition Corp., a special purpose acquisition company (SPAC). That transaction valued Vivid Seats at approximately $1.95 billion, according to Bloomberg.

Vivid Seats’ current ownership includes a substantial stake held by Eldridge Industries, led by Todd Boehly, which controls roughly 41% of the company’s Class A shares. GTCR also maintains a minority position in the business.

IQ has reached out to Vivid Seats for comment.

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