**Airbnb Is Partnering with Morgan Stanley and Goldman Sachs to Go Public**
**Airbnb is enlisting Morgan Stanley and Goldman Sachs as its joint advisers for its upcoming initial public offering (IPO) scheduled for 2020. These two renowned financial institutions will support the company in its stock market debut.**
Home-sharing and subletting platform Airbnb is considered a valuable client for any bank due to its high profile in the market. The company exploring a direct listing could potentially offer less financial gain for the banks involved. Unlike traditional IPOs that generate substantial underwriting fees for banks by issuing new shares, Airbnb’s direct listing strategy does not involve the issuance of new shares. Consequently, Morgan Stanley and Goldman Sachs are likely to provide guidance as market advisors rather than as underwriters for the IPO.
The anticipated timeline for Airbnb’s public debut is projected to be in the early to mid part of 2020. The company aims to go public before the anticipated market turbulence linked to the 2020 US presidential elections, as per an anonymous source. With a private valuation of $31 billion, Airbnb is positioned as one of the leading companies expected to go public next year.
Airbnb’s decision to lean towards a direct listing mirrors a trend in the technology sector where prominent companies like Slack and Spotify have chosen this path over traditional IPOs. This announcement comes amid a year of intense IPO activity. In 2019, numerous unprofitable companies faced challenges and failures upon going public. Notable cases include Uber and Lyft, whose stocks experienced declines following their IPOs, along with delays faced by other companies seeking to enter the public market.
