Airbnb Going Public - Nasdaq IPO
Airbnb With a Possible $35 billion Valuation
Fast, Dramatic Turnaround from COVID-19 Business Hit
Airbnb, the San Francisco based home rental company, will debut on the Nasdaq on December 10, aiming for a valuation of $35 billion. It along with DoorDash (my blog 10/30) are expected to be blockbuster U.S. IPO's to close out the year. Airbnb was devastated by the COVID-19 pandemic. As travel came to a halt, Airbnb had to layoff 25% of its workforce and get $2 billion in emergency funding from investors. As people started traveling again in Q3 2020, the company's business turned around and it scored a surprise profit for Q3. Two new trends moved the company forward. People opted to book homes rather than hotels. And, they preferred to book a home away from major cities.
Entrepreneurial Success Story
Airbnb was founded as a website in 2008 by two entrepreneurs: Brian Chesky and Joe Gebbia. They started their business in a loft and they have since revolutionalized the home rental/hotel industry. Today Airbnb lists apartments, houses and vacation homes for rent in thousands of global cities and in nearly 200 countries. For the long awaited IPO, they hope to sell 51.9 million shares at a price between $44 and $50 per share. At the higher price target, that would value the company at $34.8 billion. The company will be listed as ABNB.