How to evaluate Airbnb vs Netflix offers

LinkedIn TrW43a
Apr 25 46 Comments

I'm lucky to have incoming offers from Airbnb and Netflix. I've never worked for a pre-IPO company before, so I'm not sure how to properly value the Airbnb offer. Suppose the TC is equivalent: Airbnb is paper money with a promise of cash in the imminent future, and Netflix is cash right now. Airbnb equity could explode in value, but Netflix's won't. I could use some advice on how to properly weigh these from someone with experience in a pre-IPO situation. Any thoughts?

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TOP 46 Comments
  • LinkedIn TrW43a
    OP
    Offers are for the same TC per year: $500k. Netflix will do 100% cash. Airbnb is 40% base, 60% equity (200 / 300). I think you guys just want to see the numbers, but does knowing them change the advice?
    Apr 25 7
    • Cisco meowwww
      Netflix. Unless you live in SF.
      Apr 25
    • Tableau / Eng gg2020
      Take that 💸💸💸
      Apr 25
    • LinkedIn stuffy🐷
      Cash >> paper money. At Netflix you could also allocate some of your TC to options which can 10x if that’s what you want.
      Apr 25
    • Airbnb tyuikfr3e
      What level are you getting at Airbnb?
      Apr 25
    • Rally Health FuPayMe$$$
      I would typically go with Netflix. But in your specific situation, I would go with Airbnb. It’s an opportunity of a lifetime to join an amazing company that’s going to go ipo shortly! You can make more than a million dollars easily with the ipo and invest all that money into low cost etfs for the win! The opportunity cost of missing out on the ipo is too much!
      Apr 25
  • Seagate toti420
    Numbers change everything. 500k cash? Absolutely NFLX. Cash is 🤴 . Remember a bird in hand is worth 2 in the bush.
    Apr 25 1
    • Amazon
      dubduh

      Amazon

      PRE
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      dubduhmore
      I’d take the bush than the hand personally.
      Apr 25
  • Uber Uberer
    Offer specifics?
    Apr 25 0
  • Microsoft / Eng
    temp_

    Microsoft Eng

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    Amazon
    temp_more
    Yoe ? Offers for what levels?
    Offer numbers will help.

    I had Airbnb offer myself last month
    Apr 25 4
    • LinkedIn TrW43a
      OP
      How did you understand the value of the equity? Did you accept the offer?
      Apr 25
    • LeanTaaS ♥️ data
      Strike price? Current price? Delta? Tax?
      Apr 25
    • Microsoft / Eng
      temp_

      Microsoft Eng

      PRE
      Amazon
      temp_more
      I did accept the Airbnb offer over others. DM me.
      Apr 25
    • Airbnb liFu43
      Are you coming to Seattle? 😄
      Apr 25
  • Netflix / Eng LoveDeathR
    Netflix gives you choices. If you want to bet on company stock, you can allocate money on employee stock option. If you want to play it safe, choose all cash. And you can do that every year.

    BTW, I don't think Airbnb valuation increases more than Netflix in the last few years. Though past performance may not repeat in the future.
    Apr 25 2
    • Airbnb dtAa
      Airbnb is giving out offers based on the 2017 valuation and hasn’t had a fund raising round since. This gives a pretty good upside
      Apr 25
    • Netflix / Eng LoveDeathR
      Pinterest was valued at 12B in 2017 and 10B at IPO, just saying.
      Apr 25
  • Airbnb wanderlu$t
    Airbnb :)
    Apr 25 2
  • Airbnb dtAa
    I had both the offers and ended up choosing Airbnb. At Netflix, you are hired for a role and not for the company. At 10 YOE, the learning opportunity at Netflix would be capped when compared to that of Airbnb.

    Internal mobility at Airbnb is much better than that at Netflix.

    End of the day, both are great companies and it comes down to what you value. Good luck OP!
    Apr 25 0
  • LeanTaaS ♥️ data
    How much Airbnb is giving in equity? $300k per year?

    Current value of the stock? Exercise price?

    Your strike value?

    Delta?
    Apr 25 0
  • Airbnb 🐼 Magic
    What do you like more? Watching TV or Traveling the World?
    Apr 25 0
  • Quora eNHU01
    200k base 1.2m grant doesn't sound right for Airbnb. Base should be closer to 240k in that case.
    Apr 25 5
    • LeanTaaS ♥️ data
      40/60 (ratio)
      200/300 (yearly)
      800/1200 (4 yrs)
      Apr 26
    • Quora eNHU01
      Yes, I am capable of doing basic arithmetic...
      Apr 26
    • LeanTaaS ♥️ data
      How base is 240k?
      Apr 26
    • Quora eNHU01
      From my knowledge of Airbnb levels ... most offers with 200k base only offer like 800k in equity....

      1.2m sounds like a L6 offer, so the base should be closer to 240k.
      Apr 26
    • LeanTaaS ♥️ data
      Got it.
      Apr 26
  • Airbnb yVFt24
    Are you only weighing financial factors or will commute/culture factor for you? I was in a similar position and I ultimately felt like expected EV comp-wise was effectively the same and I chose the option that meant minimal commute (Airbnb since I live in SF) as moving wasn't really an attractive option for me. I also got scared off by Netflix since they didn't assuage my concerns about WLB and my friends there re-affirmed those concerns (though they thrive in that environment, so everyone's different).
    Apr 26 0
  • Amazon RFELife
    Until when Airbnb offer is valid?

    You may want doors open if you fail "keeper's test". Not kidding.
    Apr 25 0
  • New lplksk
    What is the position?
    Apr 25 0
  • Uber God.
    Wow Netflix really hands out half a mil in cash...

    Not sure how I would pass that up
    Apr 25 0
  • LeanTaaS ♥️ data
    Airbnb employees: when they say we are giving you $300K in stocks, are they RSU or stocks options?

    Strike price is 0 or something else?
    Apr 26 2
    • Airbnb heyha
      RSU. Only very early employee got option. They can retire already
      Apr 26
    • LeanTaaS ♥️ data
      Thanks
      Apr 26
  • Walmart.com paratha
    Netlix.Your airbnb offer is low. If you can get 500 at netflix, you should be able to get 700 at airbnb.
    Apr 25 0
  • Apple yuHI16
    Netflix and thank me later and get on that stock option plan they have.

    What’s the commute/living story for you?
    Apr 25 0
  • Microsoft
    fern vbv

    Microsoft

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    fern vbv more
    What’s the job title offered at Netflix and Airbnb?
    Apr 25 0
  • Airbnb heyha
    i wish Airbnb will explode, haha
    Apr 25 0
  • Apple Zoikajkdbc
    Yoe?
    Apr 25 0