Bending Spoons Acquires Eventbrite for $500M, Aiming to Breathe New Life into the Stalled Event Platform

Bending Spoons, a company with a penchant for reviving stagnant tech firms, is taking on its latest project: acquiring Eventbrite for $500 million. This acquisition marks a significant move for both companies. Eventbrite, once valued at $1.76 billion during its 2018 IPO, has seen its growth stall. Bending Spoons aims to breathe new life into Eventbrite by implementing strategies similar to those used in its previous acquisitions, such as Evernote and Meetup. The deal follows a broader trend where firms purchase and revitalize ‘venture zombie’ companies. This strategy has attracted attention and significant investment, indicating a shift in how the tech industry approaches struggling platforms.

Bending Spoons’ Strategic Approach

Bending Spoons is not your typical private equity firm. Unlike others that might acquire companies only to sell them later, Bending Spoons invests with a long-term vision. The company’s strategy involves purchasing brands with strong recognition but stagnant growth, such as Eventbrite. By cutting costs, raising prices, and adding new features, Bending Spoons aims to rejuvenate these companies and bring them back to profitability.

This approach has been successful in the past, as seen with their acquisition of companies like Evernote and Meetup. These brands, much like Eventbrite, had considerable market recognition but struggled with growth and profitability. Through strategic changes, Bending Spoons was able to reverse their fortunes. This pattern of acquiring and revitalizing well-known but struggling tech firms has become a hallmark of Bending Spoons’ business model.

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The Rise and Fall of Eventbrite

Eventbrite was founded in 2006 by Julia and Kevin Hartz, alongside Renaud Visage. It quickly became a darling of the tech world, raising $330 million in venture capital and enjoying a successful IPO in 2018. However, despite its initial success, Eventbrite’s growth has stagnated in recent years. Financial audits reveal that the company’s revenue remained flat at around $325 million for both 2023 and 2024.

This stagnation has made Eventbrite a prime target for acquisition by firms like Bending Spoons. The purchase price of $500 million, or roughly 1.7 times Eventbrite’s trailing 12 months’ revenue, reflects the company’s reduced valuation. Despite this, the acquisition offers Eventbrite stockholders a substantial premium of $4.50 per share, significantly higher than its recent closing price.

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Venture Zombies: A Growing Investment Trend

The acquisition of Eventbrite is part of a broader trend involving what are known as “venture zombie” companies. These are firms that, despite having strong brand recognition, have struggled to maintain growth and profitability. Investors and companies like Bending Spoons, Constellation Software, and Curious have made it their business to acquire these companies at low prices and revitalize them.

Andrew Dumont, CEO of Curious, noted that these firms often achieve profit margins of 20% to 30% after being revived. This strategy has proven lucrative, attracting significant investment and interest. The trend suggests a shift in how the tech industry views underperforming companies, seeing them not as failures but as opportunities for growth and revitalization.

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The Future of Eventbrite Under Bending Spoons

With the acquisition by Bending Spoons, Eventbrite enters a new chapter. The focus will likely be on restructuring and introducing changes to revitalize the brand. This may include new features or changes to pricing models, aiming to restore Eventbrite’s growth trajectory. Stakeholders and customers alike will be watching closely as Bending Spoons applies its successful formula to this once-thriving company.

The acquisition also sends a signal to the market about the potential value in so-called “venture zombies.” As Bending Spoons and other investors continue to pursue similar strategies, it will be interesting to see how the broader tech industry evolves in response. Will this trend lead to a new era of innovation and growth for struggling tech companies?

As Bending Spoons takes the helm at Eventbrite, the tech industry will be keen to observe the outcomes of this acquisition. Can Bending Spoons restore Eventbrite to its former glory, or will the challenges prove too great? The answer may reshape how investors and companies approach similar opportunities in the future, raising the question: what other stagnant giants might be next in line for revival?