Airbnb Will Not Go Public in 2018
Airbnb Inc., a short-term home rental service, will not go public this year, the company announced on Thursday. The company also said that there will be a change in executive leadership with the loss of its chief financial officer and it will also appoint its first chief operating officer.
This year, the San Francisco-based Airbnb, a service where homeowners and renters can post their house, room, or apartment for rent, had been on a list of anticipated initial public offerings.
Brian Chesky, the Chief Executive Officer of Airbnb, disproved that timeline, and stated that “we're working on getting ready to go public and we will make decisions about going public on our own timetable.”
According to Chesky, in line with a number of changes to help prepare the company for a long-term growth, Airbnb promoted Belinda Johnson, who has been at the company since 2011, as Chief Operating Officer. She is the most recent chief business affairs and legal officer of the company.
The responsibilities of Johnson will include overseeing the company’s legal, policy, and communications teams, Chesky stated. Her appointment follows the addition of the first independent board director of Airbnb, Ken Chenault, the outgoing CEO of American Express, announced last week.
However, these changes are steady with startups preparing to go public, according to Chesky.
On Thursday, the company also announced that Laurence Tosi, the Chief Financial Officer of Airbnb, would leave the company next week to work full-time at Weston Capital Partners, his investment fund.
Meanwhile, Airbnb has already enlisted a search firm to look for his replacement. As of now, Ellie Mertz, its head of financial planning, will fill in as interim head of finance.
Airbnb was founded in 2008, and is now in nearly 200 countries. The company was valued at $31 billion according to private investors. Airbnb is profitable and now has a $5.5 billion balance sheet, according to Chesky.
However, the global challenges remain for Airbnb, which has been critiqued for exacerbating housing shortages in already tight markets.
It has also clashed with authorities in cities like New York, Amsterdam, San Francisco, Paris, and Berlin, and it has been compelled in a number of cities to restrict the rental activity on its website to comply with local laws.
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Allison W. Bennett | February 02, 2018