Airbnb Will Never Go Public

Slack yofC32
Feb 16, 2018 37 Comments

I'm convinced Airbnb will never actually go public. They said they won't this year, despite having been "2 years from an IPO" for the last three years and fired the CTO who was supposed to take them public, so they aren't in any rush to IPO. But why woul they ever?

Companies go public maybe for two reasons:
1) They need to raise capital, but Airbnb is profitable and has billions on hand.
2) Early investors with board seats want to cash out, but Airbnb has already cashed a bunch of them out and can keep doing private rounds to roll over investors.

Additionally, if they did IPO,
1) Brian Cheeky might have to answer to investors, and probably wouldn't get free reign for "moonshots"
2) They would have to file financials which could only give regulators/local government more ammunition against home sharing.
3) They would need to give out stock to former employees with RSUs, which they just don't have to if they never go public.

It seems like an obvious choice. Eventually they'll have to change comp to attract new employees, but till then they have the perfect set up; promise new employees RSUs that will never be worth. something.

comments

Want to comment? LOG IN or SIGN UP
TOP 37 Comments
  • Airbnb
    Anyone want to buy some shares? 😉
    Feb 16, 2018 5
    • Microsoft / Eng ysa
      where and how
      Feb 16, 2018
    • Airbnb
      I was kidding but I appreciate the interest! 📈
      Feb 16, 2018
    • Airbnb bnbrian
      @ysa: you can have my paper money
      Feb 16, 2018
    • Facebook admins_mom
      Actually a thing called equidate, they're small but as legit as can be given the sector. Check them out. Just don't expect amazing liquidity.
      Feb 17, 2018
    • Airbnb airfresh
      Equidate shows a share price of $105 ffor Airbnb, what's the actual going price I can expect? Also would Airbnb frown on me for selling shares on the private market?
      Mar 7, 2018
  • Airbnb BoBAir
    But paper money could be a lifetime of freeeee toilet paper
    Feb 16, 2018 0
  • eBay N2ga26d
    What are airbnb's moonshots?
    Feb 16, 2018 2
    • Facebook xkbvc
      Lol
      Feb 16, 2018
    • Uber / Eng lesson
      Experiences like making pizzas with Giorgio in North Beach or scuba diving with Martina in Waikiki.
      Feb 17, 2018
  • Google zkdc
    The tourism industry is in extreme need of innovation. Planning and booking a trip is still a hellish waste of time, and trips themselves are never as satisfying as you hope: too expensive, disappointing, and inconvenient on every level. Most of the units I've stayed in were clearly designed as AirBnb investments, with just the level of decor and quality to keep you from leaving and going to a hotel. The notion that by virtue of staying in an AirBnb "you're a local" reeks of asinine techie entitlement and insidiousness that I hope sees backlash, particularly in other countries. Same goes for AirBnb Experiences, which purport to allow guests to buy their way into local cool kids' parties while they're Ubering from the airport. Moreover, I've never stayed at a problem-or hassle-free Airbnb that I felt was a good value and have since switched back to hotels.

    There are so many problems in this space, but I haven't seen any innovation from Airbnb in the past 3 years. Their pleas for "authenticity" are hollow, for now. Hoping they have something up their sleeves. I'd much rather participate in a free, social event connecting locals and tourists, along the lines of a hostel rooftop bar for 30-somethings in a foreign city, than head straight to the highest-rated bar near my hotel (which is just as inauthentic), but there's a long way to go.
    Feb 16, 2018 0
  • Uber xxvegas
    In conclusion, you should probably join a company that’s hemorrhaging money ;) Growth >> profitability.
    Feb 16, 2018 1
    • Lmao good point, company burns so much money they have no choice but to ipo
      Feb 16, 2018
  • Salesforce uYYD17
    Stopped using Airbnb because it's not any cheaper than a hotel and there's no way to filter out places where the host also lives on site.
    Feb 18, 2018 2
    • Airbnb BoBAir
      Seriously? It’s a really simple filter it’s called “entire home” take a look.
      Feb 18, 2018
    • Salesforce uYYD17
      Even when I check that box I still get guest houses and in law apartments.
      Feb 19, 2018
  • eBay N2ga26d
    Wouldn't the investors be fucked if they never IPO?
    Feb 17, 2018 8
    • eBay N2ga26d
      So stockholders get a percentage of the profits? I assumed the company keeps the profit to reinvest.
      Feb 17, 2018
    • Lyft redRadish
      Yes but not if they don't go public indefinitely
      Feb 17, 2018
    • Google zkdc
      They can issue dividends indefinitely
      Feb 17, 2018
    • eBay N2ga26d
      Thats lame because emps should be getting dividends on the vested rsus but they aren't because of a "tax technicality" where stock isn't issued until IPO. It increasingly seems to me the whole game is rigged for ppl already rich...
      Feb 17, 2018
    • Lyft redRadish
      It's rigged in favor of the investors who risked capital? Yeah they're the rich people but honestly if I risked capital I'd want advantages too
      Feb 17, 2018
  • Netflix someflex
    Bloomberg is a private company, and it’s a big profitable company. So I’m not surprised if Airbnb never goes public given it’s doing well financial-wise
    Feb 16, 2018 1
    • Amazon / Eng
      Ljhknhvvvi

      Amazon Eng

      PRE
      Oracle
      Ljhknhvvvimore
      Yeah but I’m pretty sure Bloomberg never intended on going public either. Might be wrong about that though.
      Feb 17, 2018
  • Amazon n01
    Based on my last 2 experiences with AirBnB, I'm today back in a hotel booked via Expedia.

    Selection has diminished, and now there are all kinds of tricks, like pictures of properties that are years old. That wouldn't even be a problem if properties were well maintained. As other good customers of the past, I'm going elsewhere, which will only leave in the platform those seeking for bargains, diminishing the interest of those thinking of making properties available, what will reduce available inventory.

    The downward spiral has started...
    Feb 16, 2018 2
    • Lyft xmgzzx4
      Yeah my Airbnb host cancelled on me while I was driving there. Sucked cuz it was during an event where all the hotels were overbooked. Also wasn't much cheaper than hotel.
      Feb 16, 2018
    • Uber knight
      booking has more guaranteed safety and quality, from my experience
      Mar 24, 2018
  • Lyft xmgzzx4
    Regulations gonna be a headache for Airbnb. I think the Same shitshow for Lyft and Uber.
    Feb 16, 2018 3
    • Uber knight
      Lyft and Uber have better user experience and cheaper price than taxi, but Airbnb cannot guarantee it will defeat traditional hotel business in these aspects, maybe it is a good additional choice.
      Mar 24, 2018
    • Recently had a bad experience where the host cancelled because the previous guy fucked up their place. It was an overbooked event and I had a hard time finding an alternative
      Mar 24, 2018
    • Next time going to use hotels
      Mar 24, 2018
  • Uber jf583us
    they were barely profitable, and most of that profit was due to their ex-CFO using their cash as a hedge fund (a profitable one). They’ll need to make a ton more profit to provide exits to current investors and employees if they don’t go public
    Feb 16, 2018 2

Salary
Comparison

    Real time salary information from verified employees