BleedGopher
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This story is starting to pick up steam.
Per Joe:
StubHub was hit with a class action lawsuit this week after it was revealed that CEO Eric Baker has spent the last several decades running a professional ticket reseller on the platform, as well as a company that helps finance other scalpers.
According to StubHub’s SEC filings, Baker is a part-owner and managing director at Andro Capital, a hedge fund that profits from buying and selling tickets on the secondary market. Baker is also connected to Colloquy Capital, an affiliate of Andro, which provides working capital for other resellers to buy/sell more tickets.
Here’s what we know so far:
The class action lawsuit essentially argues that customers viewed StubHub as a “neutral” marketplace that matches buyers and sellers, and that if customers had known about Baker’s relationship with Andro/Colloquy, they would never have used the platform (because that relationship ultimately drives ticket prices higher).
huddleup.substack.com
Go Gophers!!
Per Joe:
StubHub was hit with a class action lawsuit this week after it was revealed that CEO Eric Baker has spent the last several decades running a professional ticket reseller on the platform, as well as a company that helps finance other scalpers.
According to StubHub’s SEC filings, Baker is a part-owner and managing director at Andro Capital, a hedge fund that profits from buying and selling tickets on the secondary market. Baker is also connected to Colloquy Capital, an affiliate of Andro, which provides working capital for other resellers to buy/sell more tickets.
Here’s what we know so far:
- Eric Baker is the co-founder and CEO of StubHub
- Baker also owns a hedge fund named Andro Capital
- Andro Capital makes money buying and selling tickets
- Andro Capital has sold millions of dollars of tickets on StubHub
- Andro Capital was given preferential treatment (think: lower/no fees)
- Andro Capital also owns a financing firm called Colloquy Capital
- Colloquy Capital provides other scalpers with working capital
- Colloquy’s working capital helps scalpers buy/sell more tickets
- StubHub referred potential clients to Colloquy for financing
- StubHub paid Colloquy a percentage of client proceeds on the platform
The class action lawsuit essentially argues that customers viewed StubHub as a “neutral” marketplace that matches buyers and sellers, and that if customers had known about Baker’s relationship with Andro/Colloquy, they would never have used the platform (because that relationship ultimately drives ticket prices higher).
Is StubHub's CEO The Company's Biggest Ticket Scalper?
StubHub was hit with a class action lawsuit this week after it was revealed that CEO Eric Baker has spent the last several decades running a professional ticket reseller on the platform, as well as a company that helps finance other scalpers.
huddleup.substack.com
Go Gophers!!
