Airbnb CEO Vows Company Will ‘Be Ready to IPO Next Year’

Airbnb CEO Vows Company Will 'Be Ready to IPO Next Year'

Airbnb CEO Brian Chesky vowed that the home-sharing company will “be ready to IPO next year,” but wouldn’t confirm an initial public offering is a certainty for eager investors.

“I don’t know if we will,” Chesky said at tech outlet Recode’s recent annual Code Conference in California.

Chesky said he has “no issues with [going public] at all. It could happen,” Tech Crunch quoted him as saying.

Chesky wants to make sure an initial public offering is in the est long-term interests after years of rapid growth and regulatory battles for the short-term rental service.

Chesky said he has consulted with Facebook CEO Mark Zuckerberg about a potential IPO.

“Mark is a big proponent, and I have no issues with it,” Fox Business Network quoted Chesky as saying.

Airbnb closed a private funding round in March 2017 that valued the company at $31 billion. The company has achieved profitability, with $93 million in net income on $2.6 billion in revenue, Bloomberg reported, citing sources familiar with the matter.

While revenue is on the rise, the hospitality service has experienced regulatory challenges in several major cities, including New York, where Airbnb is banned from listing short-term rentals. Critics argue that Airbnb contributes to rising rent costs and a lack of affordable housing in major cities.

Meanwhile, Airbnb will automatically report homeowners’ income to Danish tax authorities in what will be the first such agreement globally for the company.

The agreement is aimed at making tax avoidance easier to detect and comes as Airbnb, like its taxi-hailing peer Uber, faces growing pressure from regulators worldwide, Reuters reported.

As part of the agreement, which is still to be passed by the Danish parliament, the number of days an owner may list a property is limited to 70 per year. It also includes a tax-free allowance of up to 40,000 Danish crowns ($6,350) annually.

Airbnb and similar rental platforms have also faced criticism for driving up property prices and contributing to a housing shortage in big cities such as Paris, Berlin and Amsterdam.

The company said more it had more than 30,000 renters in Denmark in 2017 and more than 900,000 visiting users.

(Newsmax wire services contributed to this report).

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Author: HEDGE

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