Late in 2019, the popular home-sharing rental business, Airbnb announced its plans to become a public company. As expected, the company plans to file paperwork for an IPO with the US Securities and Exchange Commission in the next few weeks.
Working with Morgan Stanley and Goldman Sachs
According to the Wall Street Journal, Airbnb is preparing to go public within this year and working with Morgan Stanley and Goldman Sachs Group Inc. on the same. The company lost millions as coronavirus has thrown the tourism industry into chaos. Notably, Airbnb set aside $250 million in refunds to hosts whose guests canceled their stays.
Brain Chesky, CEO of Airbnb wanted to take the initial steps towards IPO in March, but his plans got called-off due to a coronavirus outbreak. Also, the company laid off 25% of the workforce to survive. Recently, Airbnb was valued at $18 billion (approx €15.2 billion) down from an earlier valuation of $31 billion (approx €26.2 billion).
Quarterly revenue plunged 67%
Back in April, Airbnb raised $1 billion in funding from private equity firms Silver Lake and Sixth Street Partners. The company’s quarterly revenue plunged 67% with revenue falling to $335 million in the second quarter ended June 30. However, the San-Francisco company showed some signs of recovery towards the end of the quarter.
Airbnb is an online community marketplace for people to list, discover, and book accommodations around the world. Founded in August of 2008 by Brian Chesky and Joe Gebbia, it is based in San Francisco, California, Airbnb connects people to unique travel experiences, at any price point, in more than 33,000 cities and 192 countries.
This platform acts as the easiest way for people to monetize their extra space and showcase it to an audience of millions. Headquartered in San Francisco, Airbnb has satellite offices in Dublin, London, Barcelona, Paris, Milan, Copenhagen, Berlin, Moscow, São Paulo, Sydney, and Singapore.
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