StubHub CEO says recent change to all-in ticket prices will dent revenue

Eric Baker, the CEO of StubHub, addressed concerns on Wednesday regarding the impact of newly implemented federal regulations on transparent ticket pricing. He indicated that the changes are likely to lead to a temporary decline in the company’s revenue as consumers adjust to the updated rules, which mandate that online ticket sellers display the total price upfront. In an interview with CNBC's "Squawk on the Street," Baker explained, "We've seen this in states like New York that have adopted similar measures. There’s generally a drop-off of about 10%, but then things return to normal." He emphasized that this situation represents a one-time adjustment, suggesting that the market will stabilize and grow once consumers acclimate to the new pricing structure. StubHub is set to commence trading on the New York Stock Exchange under the ticker symbol "STUB". The company recently priced its initial public offering (IPO) at $23.50 per share, which falls within the anticipated range of $22 to $25, valuing StubHub at approximately $8.6 billion. The online ticketing industry, including competitors like Ticketmaster and Vivid Seats, has had to adapt to the Federal Trade Commission's new regulations aimed at eliminating "junk fees". This rule, which took effect in May, seeks to prevent deceptive pricing strategies that obscure the total cost of tickets and mislead consumers. Baker also noted that the company faced legal challenges, including a lawsuit from D.C. Attorney General Brian Schwalb last August, accusing StubHub of engaging in "predatory drip pricing". This practice involved advertising low ticket prices while the final cost at checkout would significantly exceed the initially advertised amount. In light of the new regulations, Baker expressed support for an all-inclusive pricing model, stating that a level playing field across the marketplace benefits everyone involved. Co-founded by Baker in 2000, StubHub was acquired by eBay for $310 million before Baker reacquired it in 2020 for around $4 billion through Viagogo. The company had previously postponed its IPO plans in April due to market fluctuations caused by President Donald Trump's tariffs.