Bending Spoons Snags Eventbrite: A Half-Billion Dollar Bet on a Stagnant Tech Brand

Bending Spoons has agreed to buy Eventbrite. The deal is worth roughly $500 million. This marks a major shift for the once high-flying events platform.

It represents an 81% premium over Eventbrite’s last closing stock price. The move follows Bending Spoons’ established playbook of acquiring well-known but underperforming tech companies. According to Reuters, the transaction has been approved by both companies’ boards.

From Tech Darling to “Venture Zombie” Target

Eventbrite’s journey has been turbulent. The company went public in 2018 with a valuation nearing $1.8 billion. Its annual revenue has since flatlined at around $325 million.

Audited financials show no growth between 2023 and 2024. This stagnation made it a prime target for firms like Bending Spoons. These investors specialize in what the industry calls “venture zombie” companies.

The purchase price is about 1.7 times Eventbrite’s trailing revenue. Stockholders will get $4.50 cash per share. This is a significant premium, but far below the company’s peak value.

The Bending Spoons Revitalization Strategy

Bending Spoons is not a typical private equity firm. It buys companies to hold them indefinitely. The goal is to return them to profitability through aggressive restructuring.

This often involves cutting costs and raising prices for users. New product features are also part of the revival plan. The company recently raised $270 million, bolstering its war chest for such acquisitions.

Other investors like Constellation Software follow a similar model. They seek out strong brands with stalled growth. The aim is to achieve profit margins of 20% to 30% after turnaround efforts.

This deal signals continued consolidation in the SaaS market. For Eventbrite users, changes to pricing and service are likely on the horizon.

The Bending Spoons acquisition of Eventbrite reshapes the events tech landscape. It highlights a growing trend of investing in stalled but recognizable software brands. The focus now turns to how Bending Spoons will attempt to revitalize this household name.

Info at your fingertips

Why did Eventbrite sell for only $500 million?

Eventbrite’s revenue growth had completely stalled. Its public market valuation had fallen sharply from its IPO peak. The $500 million offer represented a large premium over its immediate trading price, making it attractive to shareholders.

What will Bending Spoons do with Eventbrite?

Bending Spoons typically cuts operational costs and raises prices for end users. They also invest in new product features to improve the service. The goal is to make the acquired company sustainably profitable.

What does an 81% premium mean for investors?

It means Eventbrite stockholders are being paid 81% more per share than the stock’s closing price before the deal was announced. This is a substantial immediate gain for current investors, even if the overall sale price is lower than past valuations.

What is a “venture zombie” company?

This term describes a venture-backed company that is not growing or failing, but is also not thriving. It has a recognized brand and customer base but has stalled, making it a target for specialized acquisition firms.

Who founded Eventbrite?

Eventbrite was co-founded in 2006 by Julia Hartz, Kevin Hartz, and Renaud Visage. The company raised approximately $330 million in venture capital from top firms like Sequoia before going public.