- Bending Spoons buys Eventbrite for $500 million to revive operations
- The purchase price reflects a steep decline from Eventbrite’s IPO in 2018
- Eventbrite shareholders will receive $4.50 per share, an 81% premium immediately
Bending Spoons has agreed to buy Eventbrite for approximately $500 million, marking another addition to its portfolio of well-known but stalled software companies.
The purchase price is far below Eventbrite’s $1.76 billion valuation at its 2018 IPO, reflecting years of stagnant revenue and slowed growth.
The company intends to revive the brand by implementing operational changes similar to previous acquisitions, which include Evernote, Meetup, Vimeo and AOL.
Terms of the agreement and investor influence
Audited accounts show that Eventbrite’s annual revenue remained flat at about $325 million for both fiscal years 2023 and 2024.
This flat performance made intervention necessary to restore Eventbrite’s growth trajectory.
The deal gives Eventbrite shareholders $4.50 per share in cash, representing an 81 percent premium to the previous day’s closing price of $2.48.
Bending Spoons values Eventbrite at about 1.7 times its trailing-12-month revenue of $295 million.
While this multiple appears low compared to high-growth technology acquisitions, the structure reflects the company’s intent to focus on profitability rather than rapid expansion.
Eventbrite’s shareholders receive immediate returns while Bending Spoons positions itself to manage long-term operations without the pressure of external exits or short-term investment horizons.
Bending Spoons follows a model of acquiring companies with strong brands but stagnant business results.
Unlike traditional private equity firms, the company plans to hold onto Eventbrite indefinitely.
It aims to increase profitability through operational efficiencies, cost reductions, price adjustments and product feature improvements.
This strategy mirrors approaches used by other investors in similar “venture zombie” companies.
Examples include Constellation Software, Curious, Tiny, SaaS.group, Arising Ventures and Calm Capital.
According to Andrew Dumont, founder of Curious, such firms buy companies at low valuations and quickly adjust them to target profit margins of 20 to 30 percent.
Eventbrite’s history as a private company includes raising about $330 million in venture capital from top-tier investors such as Sequoia Capital and Tiger Global Management.
Bending Spoons’ latest $270 million funding round valued the company at $11 billion, giving it significant capital resources to support acquisitions.
Eventbrite’s established presence in the event and ticketing market gives Bending Spoons a brand it can leverage.
The company plans to implement operational changes, including cost management, pricing strategies and product improvements, to drive performance.
That said, it remains uncertain how quickly these measures can achieve meaningful results, given the complexities of revitalizing a stalled one.
Via TechCrunch
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