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