Viagogo and StubHub’s proposed merger has been given the green light by the UK’s Competition and Markets Authority regulator (CMA).
The deal will see StubHub’s international operations sold off to a new third-party company, US investment group Digital Fuel Capital.
The CMA has given the green light finally after it had previously ordered Viagogo to sell StubHub’s operations outside of North America after it had deemed it would have been in control of 90 per cent of the resold ticket market in the UK.
Digital Fuel Capital will acquire Stubhub international for an undisclosed fee.
READ MORE: Online ticket resellers like Viagogo and Stubhub could soon be shut down for breaking consumer protection rules
The ticket resale industry has come under longstanding scrutiny from the music industry and the CMA as it is used commonly by ticket scalpers or touts who purchase tickets legitimately before hiking the price up and selling them on platforms such as Viagogo.
The proposed merger has previously been referred to as the “worst deal in history”, by Forbes, as a result of the CMA’s involvement and the fact that it was agreed just as the pandemic started to disrupt the live events industry.
— Forbes (@Forbes) May 27, 2020
Stubhub co-founder Eric Baker was fired from his role before moving to London to set up a direct competitor to StubHub, Viagogo, which was then sold to Ebay in 2007 for $310m.
“We appreciate the CMA’s role in bringing the merger to this conclusion, and we look forward to sharing more details about the integration of the two businesses with our loyal customers and partners very soon,” Viagogo vice president of business development Cris Miller said.
“As the live events industry emerges from the coronavirus pandemic, robust competition in the ticketing market is needed more than ever and Viagogo will continue to take its essential role in the live events industry very seriously.
“Viagogo and StubHub will always remain committed to working with regulators, while providing safe and secure platforms for people to buy and sell tickets to events all over the world.”