Airbnb, Founded by Two RISD Students, Set For IPO

Airbnb, Founded by Two RISD Students, Set For IPO

Airbnb, the embattled home-sharing business is prepping to file for an IPO according to reports.

The company was founded by Brian Joseph Chesky and Joe Gebbia — the two met as undergrads at RISD. The two billionaires are poised for far greater wealth.

According to the Wall Street Journal, “The company plans to file IPO paperwork with the Securities and Exchange Commission later this month, laying the groundwork for a potential listing before the end of the year, according to people familiar with the matter. Morgan Stanley has been tapped to lead the offering, with Goldman Sachs Group Inc.also playing a key role, the people said."

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The company has been hit hard by the coronavirus. The company has laid off more than 2,000 workers.

“There is no guarantee Airbnb will move forward on the expected timeline, in part because of the uncertain timing of the SEC’s review process and since there is no telling whether stocks will still be in favor with investors by the time the company is ready to stage an offering. A listing could take different forms: The company could pursue a traditional IPO, launch a direct listing—in which no money is raised—or take advantage of the latest trend of merging with a blank-check company,” reported the WSJ.