After weeks of no news from Airbnb, suddenly the gates are open. Airbnb CEO Brian Chesky has informed employees that the startup is resuming plans for an initial public offering set for later this year- though experts are expecting that deadline to be pushed back to 2021.
Down revenue, the COVID crisis, and pressure from employees with expiring stock options are putting the fire under the short-term rental startup to continue preparations for its IPO.
The startup was losing steam before the pandemic hit and since March, it has seen its fair share of obstacles surrounding the pandemic. The Wall Street Journal reported that Airbnb lost $674 million in 2019 and the numbers are diving deeper and deeper as travelers canceled their plans in droves to stay in lockdown.
Chesky said to employees:
"We're not committing to going public this year, but we're not ruling it out, either. When the market is ready, we will be ready, because Airbnb was down but we were not out."
We recently reported other turbulence with the booking startup. In a desperate move, the company has asked past guests to donate to their hosts that haven’t been paid by the startup in the form of donations, resulting in social pushback on Twitter.