ILLUSTRATION BY LORENZO GORDON, GETTY IMAGES
SeatGeek has filed confidential IPO documents with the SEC, a year after the ticketing firm’s attempt to go public through an acquisition was jettisoned in recent hours, according to someone familiar with the details.
SeatGeek, which recently raised $1 billion in money, filed the filings earlier this month, said the person, who was granted anonymity as the details are private.
The confidential IPO process, which differs from the more traditional IPO route, allows for more privacy and gives companies more choices about when — and if — to make their offer. The filing earlier this month doesn’t mean SeatGeek is rushing to go public, the person said.
A SeatGeek representative declined to comment. The news was first reported by The Information.
The confidential IPO process was introduced by law in 2012, initially for small companies but now open to companies of all sizes. It allows a company to avoid the embarrassment of deciding against an IPO. It also has the benefit of a much shorter wait before a company can begin its roadshow to get institutional investors excited about the offering. With a confidential IPO, companies only have to wait 15 days after their public filing with the SEC to approach potential qualified buyers. Lyft, Uber, and AirBNB are among the companies that have gone public through this option.
A traditional IPO process requires companies to publicly file months in advance, a period during which competitors can use information in the prospectus to adjust their business plans and even file lawsuits to try and delay the IPO. The downside, according to a University of Pennsylvania study, is that confidential IPOs appear slightly less successful than traditional ones, since both institutional and retail investors haven’t had time to familiarize themselves with the new business, and therefore don’t bid heavily for shares when offering .
SeatGeek almost went public last year after completing a $1.35 billion deal with RedBall Acquisition Corp., a SPAC led by Gerry Cardinale and Billy Beane. The merger was called off just hours before the shareholders’ vote and became one of many market casualties as it turned against SPAC deals. Both sides said the decision was mutual.
SeatGeek made $186.3 million in revenue in 2021, $33.2 million in COVID-disrupted 2020 and $142.2 million in 2019, as per an SEC released as part of the SPAC deal – registration is evident. The company later said it was on track to double its sales in 2022.
Two months after the RedBall deal fell through, SeatGeek raised $238 million at a $1 billion valuation. Investors included Accel (a previous financier), Arctos Sports Partners, Wellington Management and Utah Jazz owner Ryan Smith.
SeatGeek was founded in 2009 as a mobile-first ticketing platform. Its business was initially focused on secondary sales, but the company became an early proponent of open ticketing networks – where fans can buy verified tickets across many different sites and platforms – and is now using its technical advantage to help teams in ticketing and wider support fan experiences.
Previous investors in the company include Eli and Peyton Manning; Melo7 Tech by Carmelo Anthony; the rapper Nas; Elysian Park Ventures, the fund backed by owners of the Los Angeles Dodgers; and Causeway, whose clients include Wyc Grousbeck and Mark Wan, owners of the Boston Celtics. SeatGeek has listings for all five major US leagues and major European soccer.
Some of SeatGeek’s biggest competitors are public. These include LiveNation/Ticketmaster (NYSE: LYV) and Vivid Seats (Nasdaq: SEAT).
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