Ticketing platform SeatGeek and blank-check company RedBall Acquisition Corp. have mutually agreed to terminate a merger that would have valued the combined entity at $1.35 billion.
The two parties agreed to terminate the merger due to unfavorable market conditions. RedBall and SeatGeek cited particular concern regarding growth in tech companies. The two companies first agreed to take SeatGeek public via a merger in October 2021.
RedBall and SeatGeek’s merger would have combined two companies rooted in sports.
- SeatGeek provides ticketing services to teams including the Dallas Cowboys, Brooklyn Nets, and Liverpool FC.
- RedBall is co-founded by Oakland A’s executive and minority owner Billy Beane and RedBird Capital founder Gerry Cardinale.
The dissolved merger is also a missed opportunity for investors. The union included a $100 million investment from Kevin Durant’s Thirty Five Ventures, Utah Jazz owner Ryan Smith, and others. SeatGeek also has previous investors including Eli and Peyton Manning, Carmelo Anthony’s Melo7 Tech Partners, Nas, and private equity firms Elysian Park Ventures and TCV.
SeatGeek generated a record $82.5 million in revenue in Q4 2021, up from $4.8 million for the same period the year prior. Full-year revenue for the company reached $186.3 million in 2021.
The strong results follow an underwhelming FY2020. SeatGeek saw its revenue drop from $142 million in 2019 to $33 million in 2020, largely due to the pandemic and fan limitations at in-person events.