Why Airbnb Is 'An Exciting IPO to Watch Later This Year'

Katherine Ross

Airbnb reportedly rejected a merger approach from the hedge-fund manager Bill Ackman and his Pershing Square Tontine special purpose acquisition company.

Airbnb hasn't completely ruled out a merger with Ackman's holding company, Bloomberg News reported. But early discussions were broken off when Airbnb filed confidentially for an IPO last month.

Two weeks ago Airbnb submitted paperwork necessary to file for an initial public offering. 

"The number of shares to be offered and the price range for the proposed offering have not yet been determined," Airbnb wrote.

The company had been expected to go public earlier this year, but the damaging effect of COVID-19 on the travel industry reportedly delayed those plans.

CEO Brian Chesky said in a statement in May that the company expected its total revenue to drop by more than half in 2020 due to the pandemic. 

And Bill Ackman's SPAC is one of the SPAC's many have their eyes on. The blank check company raised $4 billion in an IPO in July and Ackman has been in discussions with multiple potential companies, including Airbnb, according to Bloomberg sources. 

Jeff Marks, senior portfolio analyst with Action Alerts PLUS, weighed in on Airbnb. 

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

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Comments (7)
No. 1-7
KareemWinters
KareemWinters

I just rented an airbnb in Virginia beach over the weekend, really excited about this upcoming IPO

kperkins2
kperkins2

I was supposed to be in an Airbnb this year :((( Hopefully they can bounce back, I will be traveling to LA or Vegas soon!

AlexM5
AlexM5

I will always prefer airbnb over hotels, any day!

jeehoyun
jeehoyun

im definitely buying their IPO

JavierFrausto
JavierFrausto

As a future customer of airbnb, i'm excited for the IPO!

ZevF
ZevF

I can't wait for this IPO. Love the business model but curious how they've adapted as a result of COVID

Emmanwo8
Emmanwo8

i'm excited to see what airbnb has in-stored!