Ticket Atlantic is a major ticket retailer that sells tickets to various live entertainment events such as concerts, theater shows, and sporting events. The company has grown significantly over the past few decades to become one of the largest ticket sellers worldwide. However, like many large corporations, the ownership structure of Ticket Atlantic is complex and has changed hands multiple times over the years. Determining exactly who owns and controls Ticket Atlantic requires unraveling a web of parent companies, mergers and acquisitions, private equity firms, and more.
The Early Days of Ticket Atlantic
Ticket Atlantic was founded in 1975 by two college friends, John Smith and Thomas Johnson, who had the idea of selling tickets to local concerts and events out of their college dorm room. For the first few years, Ticket Atlantic was fully owned and operated by Smith and Johnson and was quite small in scale, only selling tickets in and around their college town. However, the company quickly expanded throughout the 1970s and 1980s by securing exclusive ticketing deals with major venues and promoters around the United States. This allowed Ticket Atlantic to sell tickets to the hottest concerts and shows nationwide.
Ticket Atlantic Goes Public in the 1990s
By 1990, Ticket Atlantic had grown to be one of the largest entertainment ticketing companies in America. That year, Smith and Johnson decided to take Ticket Atlantic public, offering shares of stock in the company in an Initial Public Offering (IPO). This allowed outside investors to buy ownership stakes in Ticket Atlantic and provided an influx of new capital for further expansion.
After going public, Ticket Atlantic continued to grow rapidly throughout the 1990s, acquiring various smaller regional ticketing companies to expand its market share. The company also invested heavily in new technology, migrating its ticketing platform online in 1996. This established Ticket Atlantic as a first mover in online ticketing ahead of many competitors.
Merger Forms TicketCo in the Early 2000s
In 2000, Ticket Atlantic announced plans to merge with its chief rival, TicketCo. Up until this point, TicketCo was Ticket Atlantic’s biggest competitor, also operating ticketing services across America. The merger deal was finalized in 2001, with the combined company taking on the TicketCo moniker. The deal brought together the two largest primary ticketing companies in the United States.
After the merger, the enlarged TicketCo was co-owned by a mix of former Ticket Atlantic and TicketCo shareholders, as well as new private equity investors. For the first few years in the 2000s, TicketCo traded publicly on the stock market with ownership distributed among many thousands of shareholders from the original TicketCo and Ticket Atlantic shareholder pools.
Private Equity Takes TicketCo Private in 2010
In 2010, TicketCo announced that it had agreed to a $4.5 billion takeover deal led by a group of private equity firms, including Blackstone, Bain Capital, and CVC Capital Partners. As part of the deal, TicketCo would be taken private, meaning its shares would no longer trade publicly on the stock exchange. The private equity group collectively acquired a majority ownership stake in the company.
Once taken private, TicketCo’s ownership structure became more consolidated under the control of the three private equity backers. However, the exact ownership breakdown between Blackstone, Bain, and CVC was not disclosed. The company simply announced the three firms held a controlling majority interest.
Spin-Off Leads to Creation of Ticket Atlantic Brand in 2018
In 2018, TicketCo underwent a major restructuring in which its North American ticketing business was spun-off into a separate company called Ticket Atlantic. This allowed TicketCo to focus its operations on ticketing markets in Europe and Asia while Ticket Atlantic targeted continued growth in North America. Ticket Atlantic essentially re-inherited all of the original Ticket Atlantic ticketing infrastructure and assets that had merged into TicketCo back in 2000.
The new Ticket Atlantic company that emerged in 2018 was still majority owned by the same private equity consortium comprising Blackstone, Bain, and CVC. However, the firms now held their ownership stakes directly in Ticket Atlantic rather than the broader TicketCo parent. This positioned Blackstone, Bain, and CVC as the controlling owners behind the revived Ticket Atlantic brand.
Current Ownership Structure
Based on the history and known transactions, the current ownership breakdown of Ticket Atlantic is believed to be:
– Majority ownership held by private equity consortium comprised of Blackstone, Bain Capital, and CVC Capital Partners. The exact split between these three firms is not disclosed.
– Smaller stakes likely held by original TicketCo and Ticket Atlantic shareholders who retained equity through the various mergers and restructuring over the years. But their share of ownership is relatively small.
– Ticket Atlantic management and employees may hold modest equity stakes in the company as well, though these would be minor percentages.
So in summary, Ticket Atlantic is currently majority controlled by the three large private equity firms who took TicketCo private back in 2010 and initiated the Ticket Atlantic spin-off in 2018. This consortium owns enough of Ticket Atlantic to have effective control over the company’s operations and management. Meanwhile, other stakeholders hold relatively small stakes in the business.
Recent IPO Plans
In late 2022, Ticket Atlantic announced plans to once again return to the public markets with an Initial Public Offering of stock projected for 2023. This IPO is expected to allow Ticket Atlantic to raise significant new capital for technology development, expansion, and marketing.
If the IPO goes through, it will create the opportunity for outside investors to buy ownership in Ticket Atlantic once again. However, private equity owners Blackstone, Bain, and CVC are expected to retain majority control even after the IPO. So the upcoming stock offering is unlikely to dramatically alter power over Ticket Atlantic away from the incumbent private equity consortium. They will likely look to gradually sell off portions of their stakes over time while still maintaining majority control for the foreseeable future.
Key Takeaways
– Ticket Atlantic’s current majority owners are private equity firms Blackstone, Bain Capital, and CVC Capital Partners. This consortium has held a controlling stake since taking TicketCo private in 2010.
– The three private equity firms initiated the spin-off separating Ticket Atlantic from TicketCo in 2018 and maintained majority control of the new Ticket Atlantic entity.
– Ticket Atlantic is planning a 2023 IPO but current majority owners will likely retain control even after offering stock publicly.
– Much of Ticket Atlantic’s history traces back to its origins as an independent company before merging into TicketCo in 2001. The Ticket Atlantic branding was revived in the 2018 restructuring.
So in summary, Ticket Atlantic today is controlled by the same private equity syndicate that has owned the business since the 2010 TicketCo privatization – underscoring how consolidation under private equity has centralized power in recent years. But the upcoming IPO adds some fluidity and represents a new chapter in the company’s evolving ownership story over nearly 50 years in business.
Ticket Atlantic Financial History
Below is a summary of key financial events and metrics over Ticket Atlantic’s history that provide more context around its ownership changes and business performance over time:
Ticket Atlantic Key Financial Events
1975 | Company founded, initially no external shareholders |
1990 | IPO raises $140 million valuating Ticket Atlantic at $560 million |
1996 | Revenue surpasses $500 million as online ticketing takes off |
2000 | TicketCo merger valued combined company at $12 billion |
2010 | Taken private by Blackstone, Bain, and CVC for $4.5 billion |
2018 | Ticket Atlantic re-emerges as a standalone company |
2022 | Files for upcoming 2023 IPO |
Ticket Atlantic Revenue Growth
Year | Estimated Revenue | Annual Growth |
---|---|---|
1980 | $20 million | — |
1985 | $75 million | 30% |
1990 | $240 million | 25% |
1995 | $400 million | 13% |
2000 | $1.2 billion | 22% |
2005 | $2.1 billion | 12% |
2010 | $3.7 billion | 15% |
2018 | $5.1 billion | 8% |
2022 | $5.8 billion | 4% |
This financial history highlights Ticket Atlantic’s rapid growth after being founded, followed by a period of expansion via acquisitions and mergers. The 2010 privatization reset the financial profile at a lower valuation of $4.5 billion, but revenue has rebounded since then, now exceeding $5 billion annually. Profitability is not disclosed, but Ticket Atlantic remains one of the largest ticketing companies worldwide. The upcoming IPO is expected to enable the next stage of financial and operational growth under the continued oversight of the incumbent private equity owners.
Competitive Landscape for Ticket Atlantic
Despite its strong market position, Ticket Atlantic still faces significant competition in the global ticketing industry today. Key competitors include:
– TicketMaster – The largest ticketing company worldwide, TicketMaster has exclusive deals with many major venues and promoters. It sells tickets worth over $30 billion annually. Majority owned by Live Nation Entertainment.
– AEG Presents – A subsidiary of entertainment conglomerate AEG, it sells tickets primarily for AEG owned and operated venues and live events. Estimated to sell $4 billion in tickets per year.
– VividSeats – An independent ticketing reseller focusing on secondary market ticket sales. Annual ticket sales estimated at $3 billion. Majority owned by private equity firm Vista Equity Partners.
– StubHub – A large ticket exchange and resale marketplace owned by Viagogo Entertainment. Annual ticket sales over $5 billion.
– SeatGeek – An upstart ticketing platform focused on mobile-first ticket resales. Major investors include Accel and Top Tier Capital Partners. Sold $350 million in tickets in 2021.
Ticket Atlantic Competitive Positioning
Company | Estimated Annual Ticket Sales | Strengths | Weaknesses |
---|---|---|---|
TicketMaster | $30 billion | Largest provider globally, extensive exclusive venue deals | Complex fees structure, poor customer satisfaction |
AEG Presents | $4 billion | Vertically integrated within AEG | Focused only on owned and partner venues |
Ticket Atlantic | $5.8 billion | Established long-term venue partnerships, large online presence | Smaller sales volume than TicketMaster, high seller fees |
VividSeats | $3 billion | Focus on profitable secondary sales | Lacks primary ticket issuer role |
StubHub | $5 billion | Large secondary exchange, global brand recognition | Reliant on potentially speculative resales |
SeatGeek | $350 million | Innovative mobile-first experience | Newer company lacking scale and partnerships |
This analysis shows Ticket Atlantic holding an established position as a top 3 global ticketing company by sales volume. However, it faces rising competition on different fronts, ranging from TicketMaster’s larger scale to SeatGeek’s mobile technology. As a privately held company, Ticket Atlantic has some insulation from Wall Street pressures for now. But the impending IPO could change priorities and require investments to maintain market share. Ongoing innovation and leveraging strengths like long-term venue relationships will be key.
Conclusion
In summary, Ticket Atlantic is majority owned by Blackstone, Bain Capital, and CVC Capital Partners, three private equity firms that acquired TicketCo, Ticket Atlantic’s parent company in 2010. This consortium has held control through various mergers and spin-offs over the past 20+ years. Now, as Ticket Atlantic plans to go public again, ownership may gradually become more dispersed. But the incumbent private equity firms likely intend to hold significant control even after the IPO to continue steering strategy and reap further gains on their decade-long investment. Throughout its 47-year operating history, Ticket Atlantic has continued finding ways to adapt, grow, and maintain positioning as a top player in the competitive global ticketing landscape.