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Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

press.airbnb.com

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Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#91

I am a big time traveler. When AirBnB appeared on the scene, it was a life changing event for me. So much better then hotels. Since then, AirBnB have not added anything that benefits me. But booking.com have catched up massively. To the point that I prefer booking.com again these days. I would have never expected that to happen. Some of my pet peeves with AirBnB: AirBnB's reviews are not chronological. So you have to…

And as someone who has lived in a building infested by Airbnbs, honestly, screw Airbnb.

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#92

Earlier quoted context omitted.

The source is Airbnb themselves saying they have been EBITDA profitable for 2 years now - which is a very strong and verifiable claim for once they do go public. https://techcrunch.com/2019/01/15/ahead-of-ipo-airbnb-achiev...

I believe the parent comment was regarding "Its actually about employee liquidity.. " part.

There have been articles since at least mid 2018 talking about how Airbnb doesn’t need additional money and how it was taking steps to prepare for going public before early employee equity grants expired in 2020. After they reworked how they gave employees equity that summer and promised to be IPO ready by mid 2019 to assuage employees, many publications ran articles about it.

Here is one article from this past summer which continues to emphasize the exact same points a year later: https://medium.com/swlh/why-airbnb-wont-go-public-in-2019-56...

Here are some excerpts from that article:

—————

Airbnb’s last funding round was in the first months of 2017, over two years ago. There is a straightforward explanation for that. Airbnb makes money. It is that rare thing; a profitable tech company. That means it doesn’t have to run to become public quite as eagerly as other companies. Its growth can be funded by the money it takes in itself.

...

Getting access to capital from a vast pool of investors is one of the main reasons companies go public. Supporting an IPO is a time consuming and expensive affair. Since Airbnb doesn’t need as much money for research and development or expanding its market, there is less incentive to IPO.

...

There is one excellent reason that Airbnb will go public in 2020, though. That’s when some shares promised to employees will expire — meaning they won’t be able to reap the financial rewards that come with growing a company.

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#93

I am a big time traveler. When AirBnB appeared on the scene, it was a life changing event for me. So much better then hotels. Since then, AirBnB have not added anything that benefits me. But booking.com have catched up massively. To the point that I prefer booking.com again these days. I would have never expected that to happen. Some of my pet peeves with AirBnB: AirBnB's reviews are not chronological. So you have to…

I feel the same way. Some of my fondest travel memories are staying in airbnbs.

But in the past few years, at a seemingly accelerating pace, what an airbnb is has changed.

In the last few years when I've used them, not all but almost all of them have simply been unlicensed hotels run by investor-landlords who aren't present and at best will pay someone else to come meet you with a key, but usually just leave it in a lock box.

Everything feels cheap, and sketchy. There is no personality. You're not meeting anyone, getting local knowledge, living with a local. On the contrary, you're sometimes sharing the same apartment with other tourists.

If I don't get any of the good sides, all I'm left with is the downsides - unpredictability, suspicion from other residents in the building, the plethora of random ways things can go wrong when your host isn't available to help you out 24/7.

I'd honestly rather just pay the extra 20% or so for a basic hotel room to get the same thing but without those downsides. Booking.com or Hotels.com are now the places I go first, before Airbnb.

I'm not at all sure that Airbnb care about this to be honest. They obviously must be aware of it, yet it continues getting more like that, not less. I guess the growth and the numbers from running a cheap unlicensed hotel rooms service is just better than they could get from their original vision. Wish them well, but also wish the old Airbnb was back!

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#94
post #44

Earlier quoted context omitted.

This will most likely be a direct listing because Airbnb doesn't need to raise more capital. Its actually about employee liquidity for people waiting 10+ years.

You keep saying this, but you can’t possibly know it unless you have inside knowledge. So either state your source or just say that you’re guessing.

Literally google “Airbnb direct listing” and you can see top analysts talking about it for years. Just like they said Spotify would do a direct listing and then they did. Just like they said Slack would do a direct listing and then they did.

Airbnb is actually profitable (at least EBITDA) unlike these other companies and hasn’t raised a major round in a while since they don’t need capital. This makes them a much better direct listing candidate than those previous companies.

It was widely reported they met with Morgan Stanley about a direct listing and Morgan Stanley is considered the expert in the field since they managed the last few.

How is Reuters for a source? If you prefer something else it has been covered by the vast majority of the financial press. https://www.reuters.com/article/us-airbnb-ipo/airbnb-plans-p...

“In a short statement posted on its website on Thursday, Airbnb did not give any details on how it plans to list its shares, although it is widely expected to take a direct-listing route.

A direct listing to go public is a process in which no new shares are created and helps companies save millions of dollars in underwriting fees.”

So why can’t I know what is widely reported to media by company insiders and has been for years?

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#95
post #37

Earlier quoted context omitted.

Nobody said this was an IPO. Most likely a direct listing since Airbnb doesn't need to raise capital.

A direct listing is definitely not the most likely option. Only two major tech companies have done direct listings and there are also a lot more reasons you would want to do an IPO instead of a direct listing 1) Neither SPOT or WORK has done great, especially WORK 2) IPO allows you to choose your investors. This gives you the opportunity to choose major institutional investors that are in for the long term which will…

Here is an article from Reuters today that emphasizes that most people expect a direct listing:

https://www.reuters.com/article/us-airbnb-ipo/airbnb-plans-p...

“In a short statement posted on its website on Thursday, Airbnb did not give any details on how it plans to list its shares, although it is widely expected to take a direct-listing route.”

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#96

Earlier quoted context omitted.

> Airbnb has the benefit of a much better UI and UX compared to several over hotel aggregators like booking.com While AirBnB might be pleasing on the eyes, Booking's UI is optimised for conversion. The benefit of "better UI and UX" is arguable here if it does not result in more $ for the business. Specially if they want to compete in the public market. Disclaimer - Ex-Booking.com employee

I genuinely like Booking.com's interface. I've learned to read the dark patterns so I don't get forced into a bad deal. But once you go past that, they offer all the information you actually need to make a decision

The fact that you feel the need to mention that "I've learned to read the dark patterns" speaks volumes about booking.com. And not in a positive sense.

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#97

I am a big time traveler. When AirBnB appeared on the scene, it was a life changing event for me. So much better then hotels. Since then, AirBnB have not added anything that benefits me. But booking.com have catched up massively. To the point that I prefer booking.com again these days. I would have never expected that to happen. Some of my pet peeves with AirBnB: AirBnB's reviews are not chronological. So you have to…

I feel the same way. Some of my fondest travel memories are staying in airbnbs. But in the past few years, at a seemingly accelerating pace, what an airbnb is has changed. In the last few years when I've used them, not all but almost all of them have simply been unlicensed hotels run by investor-landlords who aren't present and at best will pay someone else to come meet you with a key, but usually just leave it in a…

In some ways I actually prefer the cheap-investor Airbnb experience.

I recently stayed with a very kind lady at a low rate. I didn’t dislike her at all but I was staying in her house with her and it was just an odd experience for me.

Usually when I get an Airbnb it’s because I know the hotels/motels in the area are a racket and I want somewhere that is cheaper, bigger, and in a better location than the hotels. It’s especially useful and cheap when traveling in a group of 3+. I actually would prefer not to stay with a host who is present because it gives me anxiety.

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#98

I am a big time traveler. When AirBnB appeared on the scene, it was a life changing event for me. So much better then hotels. Since then, AirBnB have not added anything that benefits me. But booking.com have catched up massively. To the point that I prefer booking.com again these days. I would have never expected that to happen. Some of my pet peeves with AirBnB: AirBnB's reviews are not chronological. So you have to…

How many of these pet peeves are held by the average AirBnB user? I would guess "none". These are the kinds of complaints that "power users" have because they use websites like tools. Average users don't. My mother would look at the first three reviews and consider that in-depth research. The next time she uses AirBnB, she won't notice re-listings, or removed reviews. In short, I don't think these kinds of issues are…

You don't think removal of negative reviews is a problem?

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#99
post #43

Why all the recent IPOs?

1) Impending recession 2) Not enough IPOs so lots of investor interest to deploy capital into something ( (thus driving up the price, making it more attractive for startups) 3) We're near the end of a 7~10 year cycle where lots of private VC capital was deployed and needs to be returned 4) 500 private investor maximum SEC rule

>1) Impending recession

Eh I have heard this for the last 5 years

Re: Airbnb Announces Intention to Become a Publicly-Traded Company During 2020

#100

I am a big time traveler. When AirBnB appeared on the scene, it was a life changing event for me. So much better then hotels. Since then, AirBnB have not added anything that benefits me. But booking.com have catched up massively. To the point that I prefer booking.com again these days. I would have never expected that to happen. Some of my pet peeves with AirBnB: AirBnB's reviews are not chronological. So you have to…

I almost always prefer hotels over AirBnB-style accomodations, but when I do want a house or something, I use VRBO rather than AirBnB. At least within the US, I find it more to my liking both in terms of booking experience and quality/selection of properties. No idea how it compares outside the US, as I always book hotels when traveling abroad.
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