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During its most difficult period in history, Airbnb may be made public
According to a Wall Street Journal report, Airbnb plans to file an IPO in August. This means that we could see a list this year, but the exact timetable will depend on the review process by the Security & Exchange Commission and the look of the market. The company taped Morgan Stanley for the Journal and "plays a key role" for Goldman Sachs.
It is news that Airbnb is facing higher costs and additional obstacles due to COVID-19. After the pandemic land had stopped and caused tank bookings in cities around the World, this home sharing giant lost hundreds of millions. The firm had to provide the host whose guests canceled their stays with millions in refunds.
Back in April, Airbnb had been valued at $18 billion, a significant decrease in its last fundraising rounds in 2017 from the $31 billion price tag it won. During its April round, the Company raised $ 1 billion in funds with a stealthy price tag of 10% and verbal undertakings to reduce fixed costs and enhance management. In May, it laid off a quarter of its staff and pumped brakes on plans to extend into TV & transport. (Still, extra funds were available to help the company cope with the pandemic).
Things weren't really good even before COVID-19 slammed the USA. In the first nine months of 2019, Airbnb caused a loss of $322 million.
