openPR Logo
Press release

How did Airbnb's CEO succumb to the IPO he resisted?

11-23-2020 08:45 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: DB Cons

Airbnb CEO Brian Chesky resisted calls from his investors for years to follow the lead of other Silicon Valley unicorns and take the home rental start-up public, as he pursued his dream of turning it into a one-stop shop for leisure and travel. He is now pressing ahead with a stock market debut just as the COVID-19 pandemic hits its peak.
Airbnb aims to complete its initial public offering (IPO) on Nasdaq next month, 12 years after Chesky founded the company with former roommates Joseph Gebbia and Nathan Blecharczyk. The long road to the IPO frustrated many investors and employees waiting for an opportunity to sell their Airbnb shares in the stock market.
It took years of pressure from investors and employees, as well as a deterioration in Airbnb’s finances during the pandemic, for Chesky to give up on his expansion plans and commit to a listing. Airbnb is poised to seek a valuation of around $30 billion, less than the $50 billion that investment bankers told Chesky the company could have been valued in a listing two years ago.
Airbnb declined to comment, while Chesky declined to comment through a spokesman but Bob Rubiano, a long time advisor on Wall St. thinks now is the time to press forward, especially with renewed interest from the likes of Berkshire and Black Rock.
Airbnb officially reached technology unicorn status in 2011, when it crossed the $1 billion valuation threshold.
IPO SPAT
Investors were growing frustrated with the IPO's elusiveness. In 2017, Lawrence Tosi, who had joined Airbnb as chief financial officer two years earlier from buyout firm Blackstone Group Inc. guided investors in a $1 billion fundraising round that a listing was likely in the next 12 months, according to people familiar with the discussions.
Tosi also initiated talks with investment banks about a stock market debut that would value Airbnb at between $45 billion and $50 billion, one of the sources said.
CORONAVIRUS HITS
Chesky kept the prospect of an IPO alive for investors but never firmed up plans until September 2019, when Airbnb announced it would go public sometime in 2020. In signing off on that statement, Chesky was responding to the frustration of many of his employees, who had been granted stock options expiring in early 2021 and would lose out if the company was not public and they could not sell shares by then, though plenty of off book transactions have taken place the sources said.
Then in March, the novel coronavirus outbreak shook Airbnb. Bookings hit rock-bottom and guests canceled reservations.
Chesky decided to raise money again. Yet previous fundraising rounds were based on the prospects of rapid growth, not a crisis. Had the San Francisco-based company gone public, it could have raised money through a stock sale in the open market.
Airbnb secured $2 billion in term loans from several investment firms, including Silver Lake and Sixth Street Partners, at a blended annual interest rate of more than 9%.
Chesky focused on revitalizing Airbnb’s core home listing business by transitioning from city apartments to vacation homes that people wanted to rent in the pandemic. The turnaround worked, and Airbnb posted a profit of $219 million in the third quarter.
At an Airbnb board meeting in late July, Chesky signed off on an IPO by the end of the year, according to the sources.
“When COVID-19 hit, Chesky had to reverse a whole series of initiatives that had been in the works for three years.” Rubiano said. But now is the time to press onwards, the main players can see the huge potential for Airbnb over any other area of the hospitality industry.

112 N Main St, Stanley, NC 28164

Small analytical reporting agency based in Stanley NC

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release How did Airbnb's CEO succumb to the IPO he resisted? here

News-ID: 2192351 • Views:

More Releases for Airbnb

Airbnb Vending LLC Elevates Airbnb Stays with AI-Powered Concierge Fridge Conven …
San Diego, CA - January 27, 2025 - Airbnb Vending [http://airbnbvending.com/] is changing the game for short-term rental properties with the Concierge Fridge, a smart vending solution designed to make life easier for both guests and hosts. This AI-powered refrigerator offers unmatched convenience for travelers while giving hosts a new way to increase revenue. Image: https://www.globalnewslines.com/uploads/2025/01/4c26eeef2892f98c2c9d83f5cd2a279f.jpg Convenience at the Fingertips Imagine guests being able to grab a midnight snack, a forgotten toothbrush, or
Personal Luxury Travel Apps Market 2024 and Industry Segments Exploration and By …
"The Global Personal Luxury Travel Apps Market Size is projected to Reach at a CAGR of 13.2% during 2024-2032." Global Personal Luxury Travel Apps market Size, Status, and Forecast for the 2024-2032. In-depth research has been compiled to provide the most up-to-date information on key aspects of the worldwide market. This research report covers major aspects of the Personal Luxury Travel Apps Market including drivers, restraints, historical and current trends, regulatory
AirBnB Furnishing & Setup - DIY vs. Hiring a Pro
When furnishing an Airbnb, the decision between a DIY approach or hiring a professional interior design service like Bee Setups is crucial. While DIY projects can be tempting, professional design services offer several key advantages that significantly impact the quality, efficiency, and overall success of a rental property. Image: https://www.getnews.info/uploads/5303d93fb4eed6011c0df4e45fd79fa8.png Quality of Design Professional interior designers bring a wealth of expertise and creativity to the table, skilled at creating cohesive, visually appealing
Airbnb Market: Enterprise Tech Ecosystem Series
HTF Market Intelligence released a new research report of 18 pages on title 'Enterprise Tech Ecosystem Series - Airbnb, Inc.' with detailed analysis, forecast and strategies. The market Study is segmented by key a region that is accelerating the marketization. This section also provides the scope of different segments and applications that can potentially influence the market in the future. The detailed information is based on current trends and historic
Vacation Rental Market Is Booming Worldwide | Expedia, TripAdvisor, Airbnb
HTF MI introduce new research on Vacation Rental covering micro level of analysis by competitors and key business segments (2021-2027). The market Study is segmented by key a region that is accelerating the marketization. The Vacation Rental explores comprehensive study on various segments like opportunities, size, innovation, sales and overall growth of major players. The research is carried out on primary and secondary statistics sources and it consists both qualitative
Gig Economy And Sharing Economy Market Next Big Thing | Major Giants- Uber, Airb …
Worldwide Gig Economy And Sharing Economy Market In-depth Research Report 2021, Forecast to 2026 is latest research study released by HTF MI evaluating the market risk side analysis, highlighting opportunities and leveraged with strategic and tactical decision-making support. The report provides information on market trends and development, growth drivers, technologies, and the changing investment structure of the Worldwide Gig Economy And Sharing Economy Market. Some of the key players profiled