Allbirds sells off assets for $39 million after once commanding a $4 billion valuation
Alex Tanzer – The San Francisco sneaker startup that Hollywood celebrities and a former president once couldn’t stop wearing agreed Monday to sell its intellectual property and key assets to American Exchange Group for $39 million, roughly one percent of the $4 billion the company was valued at during its peak. The deal, first reported by the New York Post, came alongside the abrupt cancellation of an upcoming earnings call. Shares dropped 10 percent on Tuesday.
The collapse of Allbirds is a case study in what happens when a company chases green branding and celebrity buzz instead of building a product people keep buying. The brand raised $301 million during its 2021 IPO. Five years later, the fire sale returns about one-eighth of that amount. The company has shed more than 95 percent of its value since going public. Continue reading
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