Airbnb Board Approves Share Split Ahead of IPO

The video discusses Airbnb's planned 2-for-1 stock split ahead of its IPO, a move that is uncommon for private companies. The stock split is seen as a psychological or marketing strategy to make shares more affordable. Airbnb's valuation has improved by over 10% from the last period, showing recovery from the COVID-19 impact. The company has rebounded faster than expected, with increased local travel and quarantine house rentals. Despite a previous valuation drop to $18 billion, Airbnb aims for a $30 billion valuation at its IPO, though this remains speculative.

What is the primary reason Airbnb is considering a stock split before their IPO?

• To increase the overall value of the company

• To comply with regulatory requirements

• To make shares more affordable for investors

• To reduce the number of shares available

How often does Airbnb conduct 409a valuations?

• Every three months

• Every month

• Every year

• Every six months

What was the percentage drop in Airbnb's revenue during the challenging period?

• 75%

• 80%

• 67%

• 50%

What valuation is Airbnb aiming for when they go public?

• $35 billion

• $30 billion

• $18 billion

• $25 billion

What factor contributed to Airbnb's faster-than-expected business rebound?

• Increased international travel

• Rise in local travel and quarantine houses

• Reduction in operational costs

• Expansion into new markets