StubHub, an online site for reselling tickets to events, has been acquied by eBay for $310 million, minting the latest Silicon Valley millionaires in co-founders Jeff Fluhr and Eric Baker.
The controversial company has grown steadily, badgering eBay’s business for years. About 30 professional and college sports teams encourage fans to StubHub as a sort of safe haven in the reselling market, even as the New England Patriots have sued the company, saying it is encouraging fans to break anti-scalping laws (StubHub sued back).
Fluhr, 32 (pictured right), and Baker, 33 (pictured left), met as classmates at Stanford’s business school in 2000 and founded the company thereafter. According to Dow Jones (sub required), Fluhr owns 16 to 18 percent of StubHub, while Baker owns 10 percent.
Investors Allen & Co, Blue Water Capital, Pequot Ventures and Staenberg Venture Partners backed the company with a mere $15 million over the years, suggesting a profitable return for everyone.
AI Weekly
The must-read newsletter for AI and Big Data industry written by Khari Johnson, Kyle Wiggers, and Seth Colaner.
Included with VentureBeat Insider and VentureBeat VIP memberships.
The company had revenue last year of close to $100 million, and earnings of about $10 million before interest taxes, depreciation and amortization, according to the Dow Jones.
Competing start-up, Razorgator, backed by Kleiner Perkins, is still fighting away. It raised $26 million in 2005.
StubHub’s Baker, meanwhile, recently raised more than $20 million from Index Ventures and others to launch a similar company, Viagogo, to go after the European market.
(Photo credit: Chris Hardy, SF Chron)
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn More