Source: Fortune
Summary
Stubhub CEO Eric Baker is facing scrutiny for his ties to a hedge fund that resells millions of dollars of tickets on the platform. Baker is the managing director of Andro Capital, which buys tickets in bulk and resells them on Stubhub. The company pays fees to Andro for selling and servicing inventory and refers other resellers to an affiliate of the fund for financing. This has raised questions about whether Baker is manipulating markets for his own benefit.
Our Reading
The numbers tell one story.
Stubhub’s CEO Eric Baker is reselling tickets on his own platform through his hedge fund Andro Capital. The company is facing class action lawsuits and investigations over selling World Cup tickets that didn’t exist. Baker’s role in reselling tickets was disclosed prior to the IPO, but this is a site that’s been fined for deceptive pricing and has low customer net-promoter scores.
Baker’s hedge fund is making millions through Stubhub, while customers are left paying higher costs in an unfair system.
This is a test of how far a CEO can personally benefit from a business before regulators, Congress, and customers decide it’s crossed into self-dealing.
When a CEO’s personal interests align with the company’s, it’s time to ask questions.
