The operator of ticketing and experience technology platform, Eventbrite Inc. (EB) end the last trading session down -1.64 percent at $16.24 on Thursday. Announced on Monday, the news of acquisition of a start-up ToneDen, by the company took its share price up 6.84 percent on the day. However, the event and ticket management company is still at a gain of 28.89 percent over the week.
Eventbrite announced the acquisition of ToneDen without providing further details of the transaction, but said that the acquisition will not have a significant impact on its financial performance.
One of the most popular platforms for selling tickets, distributing event invitations, etc is Eventbrite. People use the company’s platform when they need to invite people and sell tickets to festivals, concerts, political events, amateur competitions, conferences, raise funds for public projects, and so on.
Social activity was reduced to almost zero during the COVID-19 pandemic, leading to serious losses for the company. The upbeat news about COVID-19 vaccine tests, however, made investors think again about Eventbrite. The announcement of the purchase of ToneDen, an automated social marketing platform that helps connect creators to audiences, including at live events, was an additional driver.
The start-up was founded in 2015 and has been Eventbrite’s active partner since 2017. The firm believes that solutions from ToneDen will help to create a relevant audience and attract interested participants to events. Approximately 80% of the event organizers surveyed identified marketing as the primary need for their company.
ToneDen algorithms will therefore help Eventbrite promote its events in better way. About half of the tickets sold in 2019 by Eventbrite were sold via the self-service channel. This makes the marketing tools of ToneDen an additional offering on the platform of self-service designed to help creators reach people.
Eventbrite Inc. (EB) has a market capitalization of $1.34 billion and is down -19.48 percent since start of the year all because of social activities put to a halt by Covid-19.