Airbnb plans to file an IPO in August, according to one The Wall Street Journal report. That means we could see a listing at some point this year, although the exact progress will depend on the Security and Exchange Commission’s review process and such markets. Come on. According to the Journal, The company tapped Morgan Stanley to lead the offering, with Goldman Sachs “playing a key role”.
The news comes at a time when Airbnb faces high costs and additional hurdles due to COVID-19. The home-sharing giant lost hundreds of millions of dollars after the pandemic stopped and spiked bookings in cities around the world. The company has had to refund millions of dollars to homeowners whose guests can cancel their vacations.
Airbnb was valued at $ 18 billion in April – a significant drop from the $ 31 billion price it earned during its last fundraising round in 2017. The company raised $ 1 billion. funding within April, with high prices including 10% interest and (reportedly) verbal commitment to reduce fixed costs and strengthen management. (However, the extra money could help the company get through the pandemic.) In May, the company laid off a quarter of its employees and pushed ahead with plans to expand into television and transportation. .
Even before COVID-19 hit the US, things were not going well. Airbnb lost $ 322 million in the first nine months of 2019.
However, Airbnb has recovered somewhat: reservations have started to increase year by year.
Bookings tend to be more towards locations within 200 miles of a client’s house, indicating that customers have been transferred vacation to stay in the country (surprisingly, given travel restrictions worldwide) and love car travel on flights.
Airbnb declined to comment for this story.