- Bending Spoons acquires Eventbrite for $500 million to revive its operations
- The purchase price reflects a steep drop from Eventbrite’s 2018 IPO
- Eventbrite stockholders receive $4.50 per share, an 81% premium immediately
Bending Spoons has agreed to acquire Eventbrite for approximately $500 million, marking another addition to its portfolio of well-known but stalled software companies.
The purchase price is far lower than Eventbrite’s $1.76 billion valuation at its 2018 IPO, which reflects 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 deal and investor impact
Audited financial statements show Eventbrite’s annual revenue stayed flat at roughly $325 million for both fiscal years 2023 and 2024.
This flat performance made intervention necessary to restore Eventbrite’s growth trajectory.
The agreement gives Eventbrite stockholders $4.50 per share in cash, representing an 81 percent premium over the previous day’s closing price of $2.48.
Bending Spoons values Eventbrite at roughly 1.7 times its trailing twelve-month revenue of $295 million.
While this multiple appears low compared to high-growth tech acquisitions, the structure reflects the company’s intent to focus on profitability rather than rapid expansion.
Eventbrite’s stockholders gain immediate returns, while Bending Spoons positions itself to manage long-term operations without pressure from external exits or short-term investment horizons.
Bending Spoons follows a model of acquiring companies with strong brands but stagnant business performance.
Unlike traditional private equity firms, the company plans to hold Eventbrite indefinitely.
It aims to increase profitability through operational efficiencies, cost reductions, pricing 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 adjust them quickly to target 20 to 30 percent profit margins.
Eventbrite’s history as a private company includes raising approximately $330 million in venture capital from top-tier investors such as Sequoia Capital and Tiger Global Management.
Bending Spoons’ recent funding round of $270 million valued the company at $11 billion, which gives it substantial capital resources to support acquisitions.
Eventbrite’s established presence in the events 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 enhancements, to drive performance.
That said, it remains uncertain how quickly these measures can achieve meaningful results, given the complexity of revitalizing a stalled business.
Via TechCrunch
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