Airbnb valued at $100 billion following blockbuster IPO — equal of greater than 5 Expedias

From Airbnb’s IPO submitting: Brian Chesky and Joe Gebbia, Airbnb’s co-founders.

Expedia has a formidable and well-funded rival knocking on the door after Airbnb’s inventory greater than doubled in a blockbuster preliminary public providing Thursday.

The Wall Avenue Journal pegged Airbnb’s valuation at $100.7 billion — a mind-boggling determine that the newspaper stated is bigger than Marriott, Hyatt Lodges and Hilton Worldwide Holdings mixed. It’s additionally valued at greater than 5 Expedia Teams, the Seattle-based journey firm that closed buying and selling at present valued at $18.4 billion.

Airbnb priced shares at $68, and closed the day at $144.71. It raised $3.5 billion within the largest U.S. IPO of the year.

In its IPO submitting, Airbnb listed Expedia Group in addition to Reserving Holdings as two rivals.

“Many of our current and potential competitors enjoy substantial competitive advantages over us, such as greater name and brand recognition, longer operating histories, larger marketing budgets, and loyalty programs, as well as substantially greater financial, technical, and other resources,” the company wrote. “In addition, our current or potential competitors have access to larger user bases and/or inventory for accommodations, and may provide multiple travel products, including flights.”

The fundraising haul by Airbnb creates a juggernaut in on-line journey.

On the GeekWire Summit in October, Expedia Group CEO Peter Kern addressed the holiday rental market, noting that the corporate’s Vrbo enterprise was doing properly throughout the pandemic.

“Definitely, we’ve seen strength in the alternative market for Vrbo — and I’m sure our friends at Airbnb are seeing similar strengths,” Kern stated.

Airbnb was based in 2008, 9 years after Microsoft spun off Expedia right into a public firm. Its fast development and now $100 billion valuation has wowed Wall Avenue. It boasts greater than 4 million hosts who lease all the pieces from California seaside homes to Colorado mountain getaways. Igloos and treehouses additionally could be rented by the marketplace, which operates in additional than 200 international locations.

The corporate, which operates an engineering heart within the Seattle space, posted income of $2.5 billion for the primary 9 months of 2020. That in comparison with $3.6 billion for a similar interval in 2019. In the meantime, its internet loss greater than doubled to $696 million for the primary 9 months of this yr, sparked partly by the decline within the journey enterprise on account of COVID-19.

By comparability, Expedia Group posted income of $4.2 billion for first 9 months of 2020, down from $9.3 billion in 2019. Its internet loss for the primary 9 months of this yr was $2.2 billion.

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