No, Ticketmaster does not own Vivid Seats. Vivid Seats and Ticketmaster are two separate and competing companies in the secondary ticket marketplace.
Ticketmaster and Vivid Seats are two of the biggest players in the secondary ticket marketplace. Both companies provide a platform for buyers and sellers to exchange tickets for live entertainment events like concerts, sports games, and theater shows. However, they operate as independent businesses and compete for market share in the multibillion-dollar ticket resale industry.
Ticketmaster is owned by Live Nation Entertainment, the world’s largest live entertainment company. Vivid Seats is owned by private equity firm Vista Equity Partners after being acquired from Chicago-based software company Fanatics in 2021. While the two companies have coexisted for years, they remain completely separate entities with no shared ownership or mergers between them.
About Ticketmaster
Ticketmaster is the world’s largest primary ticket outlet, selling tickets directly on behalf of concert promoters, music artists, sports franchises and more. The company merged with Live Nation in a 2010 deal that combined the largest concert promoter with the biggest ticket seller.
In addition to primary ticket sales, Ticketmaster also facilitates secondary ticket transactions through its Ticketmaster Resale marketplace. This secondary outlet allows ticket holders to resell event tickets they can no longer use. Ticketmaster captures a percentage fee on all resold tickets.
Key facts about Ticketmaster:
- Founded in 1976 in Phoenix, Arizona
- Merged with Live Nation in 2010
- Processes over 500 million ticket transactions per year
- Owns or operates around 130 live entertainment venues globally
- Partners with over 500 artists and sports franchises for primary ticket sales
- Also owns TicketWeb, a self-service ticketing platform
About Vivid Seats
Vivid Seats is an online secondary ticket marketplace that allows ticket buyers and sellers to exchange tickets for live events. The Chicago-based company was founded in 2001 as a Fanatics subsidiary before being acquired by private equity firm Vista Equity Partners in 2021.
Unlike Ticketmaster, Vivid Seats focuses exclusively on the secondary ticket market rather than primary sales. Sellers list event tickets they want to offload, and buyers can search for and purchase tickets on the Vivid Seats marketplace. The company charges fees to both buyers and sellers to facilitate these secondary transactions.
Key facts about Vivid Seats:
- Founded in 2001 in Chicago, Illinois
- Acquired by Vista Equity Partners from Fanatics in 2021
- Processes over 3 million ticket orders annually
- Has no affiliation with any venues, artists or sports teams
- Gets inventory exclusively from ticket holders reselling on its marketplace
- Charges buyers a 10-20% service fee plus shipping cost
Difference Between Primary and Secondary Ticketing
The key difference between Ticketmaster and Vivid Seats lies in the distinction between primary and secondary ticketing:
- Primary ticketing – The initial sale of newly created event tickets directly from the official source (venue, promoter, team etc.). Ticketmaster dominates primary ticketing.
- Secondary ticketing – The resale of tickets by original purchasers through third-party exchanges and marketplaces. Vivid Seats operates exclusively in secondary ticketing.
While Ticketmaster has a hand in both markets, Vivid Seats focuses solely on secondary ticket transactions between ticket holders. It does not have any partnerships or affiliations with venues, promoters or teams to sell primary tickets.
Ownership and Investment
The ownership and investment structures behind Ticketmaster and Vivid Seats also showcase their distinctly separate nature:
- Ticketmaster is a wholly owned subsidiary of Live Nation Entertainment, the Beverly Hills-based live events giant with a market cap of around $25 billion.
- Vivid Seats is owned by the private equity group Vista Equity Partners after being acquired from Chicago software firm Fanatics in 2021 at a $2.3 billion valuation.
As such, there is no overlap in ownership between the two companies. They have always operated as independent businesses under different parent companies and stakeholders.
Partners and Suppliers
Ticketmaster and Vivid Seats also have very different partner and supplier ecosystems:
- Ticketmaster works directly with venues, event promoters, sports teams and music artists to sell primary event tickets through its platform.
- Vivid Seats has no official partnerships. Its inventory comes solely from individual ticket holders reselling tickets through its marketplace.
These divergent supplier and partner networks demonstrate that Ticketmaster and Vivid Seats source their ticket inventory through completely different channels. Ticketmaster partners directly with event stakeholders, while Vivid Seats interacts solely with third-party ticket holders.
Revenue Sources
Ticketmaster and Vivid Seats generate revenue through different means:
- Ticketmaster makes money through primary ticket sales, service fees on tickets sold, plus fees from its Ticketmaster Resale secondary market.
- Vivid Seats exclusively earns revenue by charging service and shipping fees to ticket buyers and sellers who transact through its resale marketplace.
While Ticketmaster participates in both the primary and secondary market, Vivid Seats relies completely on providing a secondary exchange that connects independent ticket holders looking to resell with buyers. This key difference highlights the separate nature of their businesses.
Competitive Dynamic Between the Companies
As major players in the secondary ticket market, Ticketmaster and Vivid Seats compete aggressively for customer business:
- Both aim to attract ticket sellers by promoting high sales prices, wide distribution and low seller fees.
- They compete to acquire ticket buyers by offering large inventory and discounted prices versus competitors.
- Each company tries to differentiate itself through superior purchasing experience, buyer protections and customer service.
This head-to-head competition in the secondary market demonstrates that Ticketmaster and Vivid Seats are independent rivals rather than affiliated companies.
Legal and Regulatory Issues
Ticketmaster and Vivid Seats have faced separate legal and regulatory challenges related to secondary ticketing:
- Ticketmaster has been criticized for monopolistic practices that discourage competition, resulting in higher fees.
- Vivid Seats was sued in 2016 by a sports league for allegedly violating state ticket resale laws.
The fact that the companies have dealt with completely distinct legal issues implies that they are fully independent entities.
Financial Performance
An analysis of Ticketmaster and Vivid Seats’ financial results demonstrates no shared performance or common financial structure between the two companies:
Company | Revenue | Profitability | Key Investors |
---|---|---|---|
Ticketmaster | $10 billion (parent Live Nation in 2021) | Live Nation earned $117 million net income in 2021 | Public shareholders of Live Nation stock |
Vivid Seats | $500 million (estimated 2021) | Privately held, profit figures unavailable | Vista Equity Partners private equity firm |
Vivid Seats does not report public financials, but available estimates suggest it generates significantly less revenue than Live Nation-owned Ticketmaster. The companies have completely independent financial structures.
Corporate Leadership
Ticketmaster and Vivid Seats have separate executive leadership teams and organizational structures:
- Ticketmaster’s leadership is part of parent company Live Nation, led by CEO Michael Rapino.
- Vivid Seats’ CEO is Stan Chia, who has led the company since it was acquired by Vista Equity Partners in 2021.
The fact that the two companies have unique CEOs and leadership teams demonstrates their status as completely separate businesses.
Corporate Headquarters
Ticketmaster and Vivid Seats are headquartered in different cities and states:
- Ticketmaster is headquartered in Beverly Hills, California along with parent Live Nation.
- Vivid Seats is based in Chicago, Illinois after relocating from the nearby suburb of Schaumburg in 2022.
Their distinct headquarters locations on opposite ends of the country highlight that Ticketmaster and Vivid Seats do not share any facilities or have any geographic overlap.
Conclusion
In summary, Ticketmaster and Vivid Seats are completely independent companies that operate and compete in the secondary ticket marketplace. They have no common ownership, investment ties, partnerships, leadership or financial structure. Ticketmaster participates in both primary and secondary ticketing, while Vivid Seats focuses solely on secondary exchanges between ticket holders. Despite coexisting for years, Ticketmaster does not have any ownership stake or affiliation with Vivid Seats.