"Allbirds' shares closed Monday at $2.98, giving the company a market cap of around $24.5 million. The $39 million sale price was a premium over where the stock already sat."
"Revenue had declined 22% over the past twelve months to $161 million; the company was running a negative EBITDA of approximately $75 million."
"The decline of Allbirds is a well-worn cautionary tale about what happens when a brand built on a singular product idea tries to become a lifestyle company."
Allbirds has agreed to sell all its assets and intellectual property to American Exchange Group for $39 million, significantly lower than its previous valuation of over $4 billion. The company plans to dissolve after the deal closes, which requires shareholder approval. Shares rose 36% in after-hours trading, reflecting low expectations. Allbirds' revenue declined 22% to $161 million, and it reported a negative EBITDA of approximately $75 million. The brand's decline illustrates the risks of expanding beyond its original product focus.
Read at TNW | Business
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