Following the Competition and Markets Authority’s (CMA) decision to suspend legal action against the secondary ticketing site after it made changes to the way it operates, Viagogo has announced a $4bn deal to buy its rival StubHub.
The online retailer eBay bought Stubhub in 2007 for $310m and is now selling it back to its founder, Eric Baker, in a move the company suggests will create more choice for customers.
Baker is now the chief executive of Viagogo and co-founded StubHub but left before eBay bought it.
He said of the announcement: ‘Buyers will have a wider choice of tickets, and sellers will have a wdier network of buyers. Bringing these two companies together creates a win-win for fans – more choice and better pricing. It had long been my wish to unite the two companies. I am so proud of How StubHub has grown over the years and excited about the possibilities for our shared future.’
Although the CMA has suspended legal action, it will continue to maintain pressure on the resale site to ensure that it fully complies with UK consumer protection law.
The deal has already received condemnation from FanFair Alliance who campaign against industrial-scale online ticket touting.
The campaign is supported by managers and teams for artists like Mumford & Sons, Arctic Monkeys, Nick Cave, Little Mix, Pixies, Ed Sheeran, Iron Maiden, Biffy Clyro, Noel Gallagher, Wolf Alice, Mark Knopfler, Adele and many more.
Adam Webb, campaign manager, FanFair Alliance, says: ‘This feels like a desperate move from both parties.
‘However, news of this acquisition should be a major concern for both audiences and music businesses - especially if viagogo, a company that recently had a court order hanging over its head and is still the subject of a CMA investigation, use this process as an attempt to detoxify its brand.
‘FanFair will be writing to UK regulators and politicians today, and we reiterate our advice to music fans to avoid these sites.'
fanfairalliance.org
The online retailer eBay bought Stubhub in 2007 for $310m and is now selling it back to its founder, Eric Baker, in a move the company suggests will create more choice for customers.
Baker is now the chief executive of Viagogo and co-founded StubHub but left before eBay bought it.
He said of the announcement: ‘Buyers will have a wider choice of tickets, and sellers will have a wdier network of buyers. Bringing these two companies together creates a win-win for fans – more choice and better pricing. It had long been my wish to unite the two companies. I am so proud of How StubHub has grown over the years and excited about the possibilities for our shared future.’
Although the CMA has suspended legal action, it will continue to maintain pressure on the resale site to ensure that it fully complies with UK consumer protection law.
The deal has already received condemnation from FanFair Alliance who campaign against industrial-scale online ticket touting.
The campaign is supported by managers and teams for artists like Mumford & Sons, Arctic Monkeys, Nick Cave, Little Mix, Pixies, Ed Sheeran, Iron Maiden, Biffy Clyro, Noel Gallagher, Wolf Alice, Mark Knopfler, Adele and many more.
Adam Webb, campaign manager, FanFair Alliance, says: ‘This feels like a desperate move from both parties.
‘However, news of this acquisition should be a major concern for both audiences and music businesses - especially if viagogo, a company that recently had a court order hanging over its head and is still the subject of a CMA investigation, use this process as an attempt to detoxify its brand.
‘FanFair will be writing to UK regulators and politicians today, and we reiterate our advice to music fans to avoid these sites.'
fanfairalliance.org
