February 22, 2024 2:24 pm

Airbnb Hopes to Raise $3 Billion in a December IPO

Facebook
Twitter
LinkedIn
Pinterest
WhatsApp
Telegram

URGENT: JUST 11 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, TO ENSURE WE ARE FULLY FUNDED FOR NEXT MONTH,SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS - Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Airbnb Hopes to Raise $3 Billion in a December IPO

By Dennis Schaal

Skift Take
Airbnb’s proposed December timing for an initial public offering could be dicey because the U.S. presidential election and its aftermath is such a wild card at this point. Still, a $3 billion funding infusion could help Airbnb pay down the high-interest private equity debt that it raised earlier this year.

Airbnb plans on waiting until December, after the expected market volatility of the U.S. presidential election, to execute an initial public offering and to raise about $3 billion.

The funding infusion wouldn’t be huge when you consider that Airbnb raised about $2 billion in debt at double-digit interest rates in two rounds from private equity investors in April.

Reuters broke the story about the timing of Airbnb’s potential IPO, reporting that the home-sharing company wanted to wait until after the U.S. presidential election, and would aim to hit the public markets in December.

When Airbnb was preparing an IPO pre-pandemic, raising cash wasn’t its primary motivation — the driving force was to enable employees to monetize stock options which were due to expire.

The $3 billion, though, sure couldn’t hurt considering the obliteration of rentals and travel in the early stages of the pandemic. Especially if Airbnb can use the money generated in an IPO to pay down the high-interest financing it attracted from private equity investors.

For example, Expedia Group offered senior notes in July after it had raised high-interest private equity financing in April, and tentatively plans to pay it off within the next year.

Sources told Reuters that Airbnb, which has seen a surge of bookings in the past few months, could attract a $30 billion valuation, which would be on par with the level it achieved in 2019, but would be way higher than the $18 billion valuation it garnered from the private equity investment in April.

Reuters had few additional details on Airbnb’s recent performance that wasn’t already public, and there was no further word on how the company might articulate a pat to profitability.

Airbnb confidentially filed its registration statement for an IPO in August. Some analysts said an initial public offering and a road show would have to include Airbnb’s financials for the third quarter, which ended September 30.

One issue that investors are likely looking at is Airbnb’s relationship with cities and regulators — although this undoubtably is not the top issue in the minds of investors. Airbnb has been on a mission to resolve its house party problem following fatalities at a party at an Airbnb rental in Orinda, California last Halloween.

Airbnb announced on Friday that it is banning one-night stays in the U.S. and Canada over the Halloween weekend in a move that’s geared to avoid a repeat of Halloween 2019.

At the same time, Vrbo announced Thursday that it was giving hosts discounted pricing for the NoiseAware service in another bid to monitor guests gone wild.

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

Support the ANR from as little as $8 – it only takes a minute. If you can, please consider supporting us with a regular amount each month. Thank you.

Subscribe for free to our ANR news emails and access 2 free ebooks plus Reports to share with family and friends about Covid fraud and the danger of the vaccines.

Australian National Review is Australia’s first real free and independent press, one with no editorial control by the elite, but a publication that can generate critical thinkers and critical debate and hold those spreading mistruths and deliberate propaganda in mainstream media to account.

News with a difference that will be educational, compelling and create a platform for political and social change in this country and address the real issues facing this country and the world.

Watch Full Documentary

URGENT: JUST 3 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED TO LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS

Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Get access to TruthMed- how to save your family and friends that have been vaxx with vaccine detox, & how the Unvaxxed can prevent spike protein infection from the jabbed.

Free with ANR Subscription from $8