SeatGeek Confidentially Submits Private Investment Offering Documents, a Year After the Failed SPAC Agreement Collapse
SeatGeek Prepares for Confidential IPO in 2024
SeatGeek, the mobile-first ticketing platform that deals across all five major U.S. leagues and major European soccer, has confidentially filed for an initial public offering (IPO) with the Securities and Exchange Commission (SEC) in April 2023 [1]. The company, which aims for a public listing in 2024 if market conditions are favourable, is following the confidential IPO process, a quieter and more flexible approach compared to traditional public filings.
This confidential filing, allowed under certain conditions, enables companies to stay under the radar until they are ready for a full public launch of shares. SeatGeek submitted its IPO registration documents privately to the SEC before a public announcement, allowing them to prepare quietly, gather feedback, and adjust plans if needed without public scrutiny [1].
The confidential IPO process, created in 2012, allows for more privacy and flexibility in timing. SeatGeek has to wait just 15 days after their public filing with the SEC to approach potential qualified buyers [2]. The company raised $238 million at a $1 billion valuation two months after the RedBall deal fell apart [3].
SeatGeek's business originally centred around secondary sales but has expanded to include open ticketing networks and broader fan experiences. The company's biggest competitors are public companies, including LiveNation/Ticketmaster (NYSE: LYV) and Vivid Seats (Nasdaq: SEAT) [4].
Investors in the latest funding round included Accel, Arctos Sports Partners, Wellington Management, and Ryan Smith. SeatGeek's prior investors include Eli and Peyton Manning, Carmelo Anthony's Melo7 Tech, the rapper Nas, Elysian Park Ventures, the fund backed by the owners of the Los Angeles Dodgers, and Causeway, whose principals include Boston Celtics owners Wyc Grousbeck and Mark Wan [5].
SeatGeek's revenue was $186.3 million in 2021, $33.2 million in COVID-disrupted 2020, and $142.2 million in 2019 [6]. The market turned against Special Purpose Acquisition Company (SPAC) deals, contributing to the cancellation of the SeatGeek-RedBall merger [7].
It's worth noting that both sides of the SeatGeek-RedBall merger said the decision was mutual [2]. SeatGeek was founded in 2009, and companies like Lyft, Uber, and AirBNB are among those that have gone public via this confidential IPO option [8]. Employee equity at SeatGeek is often held in options or restricted stock units that vest upon acquisition or going public, meaning an IPO event could unlock significant value for shareholders and employees [3].
The IPO could provide liquidity options for those stakeholders, possibly enabling tax-advantaged strategies to monetize equity. However, there are no recent public announcements on the exact IPO date or pricing [1]. The related story is titled "Leiweke Signals 'Complementary Business' Defense After Indictment" [9].
References: 1. SeatGeek Files Confidentially for IPO Ahead of Expected 2024 Debut 2. SeatGeek and RedBall Acquisition Call Off Merger Amid Market Turmoil 3. SeatGeek Raises $238 Million at $1 Billion Valuation After RedBall Deal Falls Apart 4. SeatGeek's Biggest Competitors 5. SeatGeek Raises $238 Million at $1 Billion Valuation Two Months After RedBall Deal Falls Apart 6. SeatGeek's Revenue 7. The Market Turns Against SPAC Deals 8. Lyft, Uber, and AirBNB Go Public Via Confidential IPO Option 9. Leiweke Signals 'Complementary Business' Defense After Indictment
- SeatGeek, in preparation for its anticipated 2024 public listing, will likely undergo a detailed financial analysis to ensure the company's readiness for the IPO.
- As SeatGeek navigates the technology-driven landscape of the ticketing industry, it faces competition from public companies such as LiveNation/Ticketmaster and Vivid Seats, demonstrating the significance of technology in business finance.
