Airbnb aims for $35 billion valuation in long-awaited IPO

(Reuters) – Airbnb Inc said on Tuesday it is aiming for a valuation of up to $34.8 billion in its initial public offering (IPO), in what would cap a stunning recovery in its fortunes after the U.S. home rental firm’s business was heavily damaged by the COVID-19 pandemic earlier this year.

FILE PHOTO: The Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris, France, March 12, 2019. REUTERS/Charles Platiau/File Photo

In a regulatory filing, Airbnb set a target price range of between $44 and $50 apiece to sell 51.9 million shares, which would pull in $2.6 billion. Airbnb could end up selling $2.85 billion at the upper end of the range.

Of the shares being sold, Airbnb founders Brian Chesky, Joe Gebbia and Nathan Blecharczyk will together sell nearly $100 million worth of shares in the IPO launch.

Airbnb struggled

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Airbnb Seeks Valuation Up To $35 Bn In IPO Filing

Airbnb is seeking to raise some $2.6 billion in its upcoming share offering, which could give the home-sharing giant a valuation as high as $35 billion, an updated regulatory filing showed Tuesday.

The California group said its initial public offering would include some 51.9 million shares in a range of $44 to $50.

The latest filing appeared to confirm an upbeat outlook for Airbnb, which has claimed its home-sharing model has proved resilient during the global coronavirus pandemic with travelers seeking safer lodgings and avoiding crowded hotels.

Airbnb offered no date for the start of trading, which is expected sometime this month under the trading symbol ABNB.

The company may still update its offering price, but at current levels the valuation would be as much as $35 billion including restricted stock and options. The IPO would raise between $2.1 billion and $2.6 billion at the current range.

Airbnb moved closer to a stock market debut with an updated filing seeking a valuation up to $35 billion Airbnb moved closer

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How Airbnb Beat The Covid-19 Virus

Going into 2020, Airbnb was growing at a rapid pace and aggressively expanding into new categories. So what could possibly go wrong?

Well, within a couple months, the Covid-19 pandemic would shutdown the travel industry. And suddenly Airbnb was facing an existential crisis. 

By April, the gross bookings for nights and experiences plunged by 72% on a year-over-year basis. In fact, from March to April, there were more cancellations than bookings!

While the situation was certainly dire, the management team wasted little time in pursuing a major restructuring.  The result was that—over time—the business started to improve. By June, there was actually a 1% increase in gross bookings.

Now this is not to say that the business is no

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Why Airbnb is going public amid the coronavirus pandemic

  • Airbnb has filed to go public, even though the pandemic caused some major financial troubles at the company, leading it to take out two high-interest rate loans and lay off a quarter of the staff.
  • By going public now, the company can raise money to pay off the loans without having to pay an additional $1 billion in interest over five years.
  • Employees will also be able to sell off some of their equity, raising employee morale during a tough year with unprecedented layoffs. 
  • The company also outperformed hotel-centric competitors like Bookings.com and Expedia, differentiating itself during a tough year for travel.
  • Visit Business Insider’s homepage for more stories.

Airbnb finally filed for its much-anticipated IPO on Monday, the most concrete move it has taken towards going public in a tumultuous year for the home-sharing and hospitality giant.

Airbnb’s September 2019 announcement of its intention to go public was made

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Airbnb files for IPO, shows it can actually make a profit

Airbnb has filed paperwork for its initial public offering that shows, unlike other tech unicorns, it’s been profitable in several quarters over the last couple of years. The revelation was included in the short-term rental company’s 250-page filing with the US Securities and Exchange Commission on Monday.

During the third quarter of this year, Airbnb made $219 million in profit on revenue of $1.34 billion. Despite the positive outlook, those numbers are down nearly 19% from the same time last year when it reported $227 million in profit on revenue of $1.65 billion. The third quarter is the only quarter Airbnb made a profit so far this year.


The company said the reason for this is largely due to the hit it took as the novel coronavirus pandemic has ravaged travel destinations and people have adhered to shelter-in-place mandates.

“Our financial results for the first nine months of 2020 were

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The people that benefit most when Airbnb goes public

  • Airbnb is finally going public.
  • The company’s S-1 filing did not name all of the investors who have bought shares in Airbnb over the years, as it raised more than $6 billion in funding, but it revealed who the biggest shareholders are.
  • We’ve calculated the value of their stakes based on a price of $34.88 a share.
  • Visit Business Insider’s homepage for more stories.

Airbnb has dropped the paperwork for its initial public offering, and it’s ripe with juicy details that a startup doesn’t have to disclose but a public company does, such as which investors own the largest stakes.

As is typical these days, Airbnb is using a two-tier structure where it sells Class A shares to the public, with each of those shares offering one vote per share; and it has Class B shares — which are owned only by its founders, execs and key investors — that

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Airbnb files for IPO with future of travel uncertain; Expedia Group listed as competitor in prospectus

From Airbnb’s IPO filing: Brian Chesky and Joe Gebbia, Airbnb’s co-founders.

Airbnb officially filed for an IPO and revealed its finances for the first time on Monday.

The company’s IPO prospectus shows $2.5 billion in revenue through the first nine months of 2020, down 32% year-over-year, with a net loss of nearly $700 million, growing from $322 million in the year-ago period.

Airbnb’s gross monthly bookings fell by 72% in April, a low for 2020, and have recovered through this year but are still trending down compared to 2019. The company did post net income of $219 million in the third quarter.

It’s been a roller coaster year for Airbnb and others including Seattle-based Expedia Group as the pandemic crushes the travel industry amid various restrictions and mandates. Airbnb laid off 25% of its 7,500-person workforce, slashed marketing expenses, and raised $2 billion in debt financing to weather the COVID-19

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Airbnb says sharing model proved ‘resilient’ amid pandemic

Airbnb said in its stock market filing Monday that its home-sharing model proved resilient during the global pandemic, as it posted a profit for the just-ended quarter.

The San Francisco-based startup delivered a $219 million profit in the three months ending in September, but nonetheless lost $697 million in the first nine months of the year amid a 32 percent revenue drop as the Covid-19 outbreak crushed the travel sector.

In its first public release of its financial data, Airbnb said its home-sharing model has been “resilient” compared with others in the sector during the crisis.

“People wanted to get out of their homes and yearned to travel, but they did not want to go far or to be in crowded hotel lobbies,” the document said. “Our platform has proven adaptable to serve these new ways of traveling.”

Airbnb revenue slipped to $2.5 billion in the first nine months of

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Airbnb Delays IPO Filing to Next Week

Room- and home-sharing service Airbnb delayed filing for an initial public offering until next week, to distance the move from the U.S. presidential election, according to a media report. 

A Securities and Exchange Commission filing could come as soon as Monday, sources told Bloomberg. The company had planned to file this Thursday but delayed the move so as not to be overshadowed by the election results. 

The San Francisco company plans to raise as much as $3 billion for its debut on the Nasdaq, making it one of the largest domestic IPOs in 2020, according to reports.

Last week, multiple reports said the 12-year old company would file on Thursday, opening up its financials and listing documents for the first time to attract investors ahead of its public debut. 

Back in April, Airbnb raised $2 billion in debt from investors, bringing its estimated valuation to $18 billion. That was a

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