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Travel apartment broker: Airbnb is probably planning to go public despite the corona crisis

11:46  12 august  2020
11:46  12 august  2020 Source:   handelsblatt.com

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Airbnb has indicated that it planned to go public via an unusual method known as a direct listing, where no new shares are sold. “ Airbnb was born during a global crisis ,” Mr. Chesky wrote, referring to the 2008 financial crisis and without mentioning the company’s I.P.O. plans .

> Airbnb has confirmed it plans to go public next year, ending a long period of speculation about when the disruptive accommodation platform We generally expect that people who come here are not using the forum to build a brand, generate clicks, or shill. Posts that are strictly self-interested or

Die Coronakrise hat Airbnb schwer zugesetzt. Das Unternehmen verfolgt seine Börsengang-Pläne aber scheinbar weiter. © Reuters The corona crisis has hit Airbnb hard. The company is apparently pursuing its IPO plans.

According to inside information, Airbnb wants to submit a secret stock market prospectus for the 2020 IPO in the middle of the corona crisis. The risks are great.

By the end of 2019, Airbnb was considered a hot candidate for the stock market alongside taxi competitors Uber and Lyft . That changed when their IPOs turned into disappointments. And at the beginning of 2020 the corona crisis smashed all stock exchange plans . Many Airbnb rental companies worldwide have had to withdraw their offers. But the San Francisco housing broker doesn't seem to have put its stock market plans aside.

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Apartment broker airbnb aims for direct listing. So it is quite possible that Morgan Stanley and Goldman Sachs will be somewhat more cautious. The business could be less lucrative for them anyway: Because Airbnb probably tends to go public directly rather than through a regular

The room and apartment broker Airbnb has long been a thorn in the side of the big names in the hotel industry. Started eleven years ago as a small The business could be less lucrative for them anyway: Because Airbnb probably tends to go public directly rather than through a regular Initial Public

The "Wall Street Journal" quotes informants from the industry, according to which Airbnb is planning to file a prospectus with the US regulatory authority SEC. The goal: The hotel competitor apparently wants to go on the market before the end of the year.

CEO Brian Chesky admitted to employees at the beginning of May that sales in 2020 will probably only reach half of the 2019 value. To save costs, 1900 employees had to leave . Landlords, called “hosts” within the company, ran into financial problems: especially if they had only bought real estate for rentals on Airbnb and could not pay the mortgage due to missing guests. Under public pressure, Airbnb agreed to reimburse guests for room rents already paid if their booking had to be canceled due to Covid-19. In return, Airbnb demanded money back from the landlords.

Unpublished condemnation for Airbnb

 Unpublished condemnation for Airbnb © TeroVesalainen / Pixabay Unpublished condemnation for Airbnb The housing rental platform was condemned, last June 5, for an illegal sublet in Paris. Airbnb was condemned, jointly and severally with a tenant who had illegally sublet his accommodation, to pay some 58,000 euros to the owner, the Paris court ruling that the tourist rental platform should have verified the legality of the transaction.

Airbnb ’s initial public offering plans come during an already busy year for public listings of so-called unicorns—privately held startups valued at more than billion. Lyft shares have dropped more than 40% during their public existence, while Uber stock is down a little less 20% since the company’s IPO.

And Airbnb is no exception: Legions of travelers canceling their plans add up to a crisis for many of But obviously it’s not just Airbnb . At the moment, it might feel as if no company will ever go public again. More broadly, the idea of access to stocks is probably going to be a lot less popular in the

According to its own information, the US news agency Bloomberg was able to view internal figures for 2019 in early 2020 and reported a doubling of the loss in the fourth quarter of 2019 to $ 276.4 million (excluding interest, depreciation, amortization and taxes) compared to the previous year. Sales were up 32 percent year-on-year. But that was before the corona crisis, which temporarily brought the company to a standstill.

In order to survive the crisis, fresh capital was needed: first a billion in bonds and company shares from investors, then, Bloomberg reported at the time, another billion in further debts at supposedly nine percent interest.

Lyft and Uber are considered bad examples

Submitting stock market prospectuses behind closed doors gives supervisors and companies the opportunity to resolve serious internal differences, for example in the bookkeeping or key figures. The application can then be withdrawn or the investors approached. Morgan Stanley and Goldman Sachs are suspected to be lead banks. Airbnb takes no position on the alleged prospectus.

outdoor pools open again: These corona rules apply in summer 2020

 outdoor pools open again: These corona rules apply in summer 2020 © Getty Images If you are planning to visit an outdoor pool, you must currently observe some rules.

Airbnb is not in a rush to go public . Highly-anticipated IPOs like Uber and Lyft didn’t live up to the hype once they started trading on the public markets. However, Airbnb is in a decidedly different position than other highly-valued, massively-capitalized tech companies eyeing public market debuts.

Before the crisis , China was Airbnb ’s fastest-growing market. “We haven’t rented out a single One of its investors said the conditions have made it “impossible” to move forward with plans until the Unlike a typical IPO, Airbnb is considering a direct listing in which no new shares are created

When the company raised money in the private capital market in 2017, it was valued at around $ 30 billion. Now the company's value is estimated to be closer to $ 18 billion. Whether this assumption is worth the paper on which it was calculated remains to be seen when the prospectus is published and the issue price is set.

That was Truth Day for investors in Lyft and Uber, too, and valuations had not yet proven to be anywhere near sustainable for either. The courses are under water. Uber is trying to offset the slump in sales caused by Corona with food deliveries. Lyft will release quarterly figures on Wednesday.

Airbnb's IPO in times of crisis would be brave. The prospects are generally not bad at all. In contrast to the global economy, the stock exchanges, especially Wall Street , are in good shape. IPOs such as the insurer Lemonade have recently had a positive response from investors: on the first day of trading, it rose 139 percent, the used car dealer Vroom saw a plus of 117 percent at the start of June.

Yes: At Airbnb, the pandemic remains an incalculable risk. In winter, a "second wave" of corona infections could require new, drastic protective measures and paralyze the travel industry again.

In addition, investors have alternatives on the stock market, from hotel chains such as MGM to online travel companies such as Booking.com, Expedia or service providers such as Saber. Some of these prices have fallen sharply, the companies are well established and are likely to benefit greatly as soon as the travel market picks up again.

At Airbnb, on the other hand, there is the additional risk that early investors will cash in on a large scale after the IPO after the expiry of a usually six-month holding period - which could temporarily put an additional burden on the price.

More: The eerie boom of the IPO through the back door

Airbnb: the European Union agrees with the French law on regulation, Paris exults .
© TeroVesalainen / Pixabay Airbnb: the European Union agrees with the French law on regulation, Paris exults While European justice validates the French law intended to regulate the rental of apartments for short periods (as for Airbnb), the city of Paris is pleased with its "victory". Still, the case in France is not yet over ... Satisfaction of the city of Paris, after a legal victory by France on the front of short-term rentals.

usr: 2
This is interesting!