Italian tech firm Bending Spoons, known for acquiring and revitalizing stagnating digital brands, has reached an agreement to purchase the event ticketing platform Eventbrite for approximately $500 million. This acquisition price represents a significant drop from Eventbrite's $1.76 billion valuation at its 2018 initial public offering (IPO). Like previous Bending Spoons acquisitions such as Evernote, Meetup, Vimeo, and AOL, Eventbrite possesses a strong brand identity but has experienced stalled business growth, as indicated by recent audited financials.
Co-founded in 2006 by Julia and Kevin Hartz alongside Renaud Visage, Eventbrite quickly established itself as a prominent events marketplace and ticketing company. Before going public, the platform, once considered a tech darling, secured roughly $330 million in venture capital funding from leading investors like Sequoia Capital and Tiger Global Management over its 12 years as a private entity.
Bending Spoons' Unique Acquisition Strategy
Bending Spoons employs a distinct acquisition strategy, differing from traditional private equity firms. The company acquires businesses with the intent to hold them indefinitely, focusing on achieving profitability through cost reductions, strategic price adjustments, and the introduction of innovative product features. This approach is backed by substantial capital; in October, Bending Spoons announced a significant $270 million funding round, valuing the firm at an impressive $11 billion.
This strategy of acquiring, revitalizing, and holding stalled software companies—often dubbed "venture zombie" firms—is gaining traction among other investors. Notable players in this space include Constellation Software, Curious, Tiny, SaaS.group, Arising Ventures, and Calm Capital. Andrew Dumont, founder and CEO of Curious, highlighted this approach to TechCrunch, stating that his firm targets "great companies" at low valuations, rapidly transforming them to achieve profit margins of 20% to 30%.
Eventbrite's Financials and Acquisition Premium
Eventbrite's financial performance has been stagnant, with audited annual revenue holding flat at approximately $325 million for both fiscal years 2023 and 2024. Bending Spoons' offer values the company at roughly 1.7 times Eventbrite's trailing 12-month revenue of $295 million. Despite this modest revenue multiple, the acquisition terms are favorable for Eventbrite stockholders, who will receive $4.50 in cash per share. This represents a substantial 81% premium over the previous day's closing price of $2.48, underscoring Bending Spoons' commitment to the deal.
