Airbnb Rejects Bill Ackman's SPAC Listing Proposal... Pursues IPO Instead

[Image source=Reuters Yonhap News]

Bill Ackman, CEO of Pershing Square
Photo by Reuters Yonhap News

[Asia Economy Reporter Hyunjin Jeong] The U.S. accommodation sharing platform Airbnb has decided not to pursue a backdoor listing through a Special Purpose Acquisition Company (SPAC) proposed by billionaire investor Bill Ackman, founder of the hedge fund Pershing Square, Bloomberg News and other sources reported on the 2nd (local time).

According to reports, Airbnb plans to pursue a traditional initial public offering (IPO) and has decided not to discuss Ackman’s proposal for the time being. Sources said that although discussions took place at an early stage, Airbnb secretly filed for an IPO last month and has currently decided not to consider using a SPAC.

Ackman recently told investors that there were behind-the-scenes discussions with several companies, including Airbnb. In July, he conducted the Pershing Square IPO, a SPAC, securing $4 billion in funds. He had previously said on Bloomberg TV in July, "I want to look at companies like Airbnb. I have always praised that business."

Ackman has advocated the benefits of listing through a SPAC, saying, "Uncertainty is the enemy of an IPO and the friend of a $5 billion SPAC." He emphasized that in the past decade, only Alibaba Group, Uber, and Facebook had IPOs exceeding $5 billion, and that amid increased market uncertainty due to the COVID-19 pandemic and the U.S. presidential election, opportunities can be seized through a SPAC.

The market expects Airbnb to proceed with its IPO before the end of this year, after the November election. Airbnb’s corporate value was estimated at $31 billion in 2017. Currently, Morgan Stanley and Goldman Sachs have been selected as IPO underwriters, and they are also reported to have advised on Ackman’s proposal. However, foreign media reported that the details of any proposals exchanged between Ackman and Airbnb remain unknown.

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