Airbnb Plans to File Confidentially for IPO in August
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Re: Airbnb Plans to File Confidentially for IPO in August
#2Didn't AirBnB just take out a huge loan on less-than-stellar terms?
https://techcrunch.com/2020/04/15/airbnb-ups-its-debt-by-1bn...
Not to mention how the company is getting hammered by the coronavirus, in addition to having to face the reality of having used shady tactics to prop up positive reviews over the years.
https://www.vice.com/en_us/article/43k7z3/nationwide-fake-ho...
This sounds like they're trying to cash out while they still can with the expectation of it going further south over time.
Re: Airbnb Plans to File Confidentially for IPO in August
#3I would have expected them to postpone for sure, given COVID. Does anyone have any ideas on why they didn't postpone? Could it just be them expecting that it'll get much worse?
Re: Airbnb Plans to File Confidentially for IPO in August
#4I would have expected them to postpone for sure, given COVID. Does anyone have any ideas on why they didn't postpone? Could it just be them expecting that it'll get much worse?
they got a terrible loan when the market was going crazy in March and now have massive interest payments they’ll have to manage for who knows how long as a cash flow negative business.
in short they definitely need capital given how uncertain the travel market remains.
Re: Airbnb Plans to File Confidentially for IPO in August
#5I would have expected them to postpone for sure, given COVID. Does anyone have any ideas on why they didn't postpone? Could it just be them expecting that it'll get much worse?
I'd imagine that they're in desperate need for more funding, as their valuation will have certainly gone down since the start of the pandemic. One of the big advantages of going public (apart from selling the equity) is that you get easier/lower cost access to loans. I can imagine Airbnb aggressively issuing bonds once they go public in order to stay afloat for the remainder of the pandemic.
Re: Airbnb Plans to File Confidentially for IPO in August
#6Didn't AirBnB just take out a huge loan on less-than-stellar terms? https://techcrunch.com/2020/04/15/airbnb-ups-its-debt-by-1bn... Not to mention how the company is getting hammered by the coronavirus, in addition to having to face the reality of having used shady tactics to prop up positive reviews over the years. https://www.vice.com/en_us/article/43k7z3/nationwide-fake-ho... This sounds like they're trying to cas…
personally i really like AirBnB as a product but if they're planning to just cash out i suppose now is a good time to get the ball rolling. Once the pandemic ends there will be huge surge in demand and the stock price will go up at least temporarily. Maybe the surge will last long enough for everyone who's planning to cash out to do so.
Re: Airbnb Plans to File Confidentially for IPO in August
#7For context, in September of last year, Airbnb publicly announced they intend to IPO during 2020 [0]. The IPO delayed due to COVID.
Airbnb has a lot of pressure to IPO. In 2018, The Information described how employees & investors were frustrated that their equity was still tied up, a decade after the company founded [1]. At the time, Airbnb said they planned to IPO in 2019 or 2020.
[0] https://news.ycombinator.com/item?id=21016724
[1] https://www.theinformation.com/articles/airbnb-promises-more...
Re: Airbnb Plans to File Confidentially for IPO in August
#8Didn't AirBnB just take out a huge loan on less-than-stellar terms? https://techcrunch.com/2020/04/15/airbnb-ups-its-debt-by-1bn... Not to mention how the company is getting hammered by the coronavirus, in addition to having to face the reality of having used shady tactics to prop up positive reviews over the years. https://www.vice.com/en_us/article/43k7z3/nationwide-fake-ho... This sounds like they're trying to cas…
well they need capital regardless of whether they dump stock - but the lockup period could be painful if Covid persists 6+ months down the line post IPO. Or negative regulatory action.
Re: Airbnb Plans to File Confidentially for IPO in August
#9I would have expected them to postpone for sure, given COVID. Does anyone have any ideas on why they didn't postpone? Could it just be them expecting that it'll get much worse?
> Does anyone have any ideas on why they didn't postpone?
If Airbnb has handed 10 year expiring stock options to core employees, then they're right at the cusp of expiring this year.
I would guess it doesn't affect anyone who opted for an 83B early on, but for those who held onto them without exercising them on the pennies might be very unhappy without a 2020 IPO.
It feels like a different era now, but this was discussed in detail in late 2019 [1].
The discontent has been exacerbated because Airbnb, which has been valued at $31 billion, doled out two tranches of employee equity that are set to start expiring in November 2020 and in mid-2021; those shares will become worthless if the company is not trading publicly by then, they said.
[1] - https://www.nytimes.com/2019/09/20/technology/airbnb-employe...
Re: Airbnb Plans to File Confidentially for IPO in August
#10Didn't AirBnB just take out a huge loan on less-than-stellar terms? https://techcrunch.com/2020/04/15/airbnb-ups-its-debt-by-1bn... Not to mention how the company is getting hammered by the coronavirus, in addition to having to face the reality of having used shady tactics to prop up positive reviews over the years. https://www.vice.com/en_us/article/43k7z3/nationwide-fake-ho... This sounds like they're trying to cas…
Is it getting hammered though? Genuine question.
Anecdata: Reason I ask is that we did a trip a few weeks ago and for us, hotels were out of the question. Never used Airbnb before but did this time to get smaller places to ourselves.
As I was looking it was tough to get everything lined up as many places were booked up. Some really great looking places were practically booked up for the next several months. Wasn't sure if this was the norm or if many others are doing the same.