Airbnb halts hiring and marketing, investors say its future uncertain - Business Insider

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Airbnb is freezing marketing spending and slowing hiring as losses reportedly reach hundreds of millions of dollars

because of its ample cash reserves and name-brand recognition. Companies that opt to go public via a direct listing don't raise money, as is the case for a traditional IPO, but employees and company insiders are able to sell their stock on the open market on the first day of trading.

"I think it's definitely going to impact timing," Torch Capital founder and managing partner Jon Keidan told Business Insider. "Everything will be pushed back. You just can't do that with uncertainty, and Airbnb is going to be heavily, heavily impacted. It will be tough. There will be a big delay at the least, and they might rethink strategy entirely.", although rumors of freezes abound on Silicon Valley anonymous chat apps and message boards.

Airbnb has raised $4.4 billion in venture capital since it was founded in 2008 and is privately valued at $31 billion,. An Airbnb spokesman declined to confirm the details of this report, but said that the startup "is resilient and built to withstand tough times and we're doing all we can to strengthen our community and our company."

Do you work at Airbnb and want to share your story? Contact this reporter via encrypted messaging app Signal at +1 625-2555 using a nonwork phone, email atAxel Springer, Insider Inc.'s parent company, is an investor in Airbnb.

 

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