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Bending Spoons agrees to buy Eventbrite for $500M to revive stalled brand
Bending Spoons is set to acquire Eventbrite for $500 million, significantly lower than its previous valuation of $1.76 billion. Despite Eventbrite's strong brand, its revenue has stagnated. Bending Spoons' strategy focuses on reviving stalled tech companies by implementing cost cuts and introducing new features. The acquisition values Eventbrite at 1.7 times its revenue, with shareholders receiving an 81% premium on stock prices.
Key points
- Bending Spoons agrees to purchase Eventbrite for $500 million.
- Eventbrite was valued at $1.76 billion at its IPO in 2018 but has seen no revenue growth, with $325 million annual revenue for FY 2023 and FY 2024.
- The acquisition price represents 1.7 times Eventbrite's trailing revenue of $295 million.
- Shareholders will receive $4.50 per share, an 81% premium over the last closing price of $2.48.
- Bending Spoons follows a strategy of acquiring and reviving 'venture zombie' companies, aiming for long-term profitability.
Why it matters
- The acquisition reflects a growing trend in the tech industry of acquiring underperforming companies to revitalize them.
- This move is part of the increasing focus on profitability over growth, demonstrating a shift in investment strategies among tech investors.
- Similar companies like Evernote and AOL have been revived by Bending Spoons, showing a pattern in the technology acquisition landscape.
The acquisition of Eventbrite by Bending Spoons illustrates a strategic shift in the tech industry towards acquiring and rehabilitating stalled brands, aiming for sustained profitability and long-term growth.