Allbirds announced a definitive agreement with American Exchange Group to sell all of its intellectual property and certain other assets for $39 million. The deal was approved unanimously by the board and is expected to close in the second quarter of 2026. Upon completion, Allbirds will distribute net proceeds to shareholders in the third quarter of 2026, following the winding‑down process.
The sale is part of a broader plan to dissolve the company. Allbirds has been experiencing a steep decline in revenue and mounting losses, with Q3 2025 net revenue at $33.0 million, down 23.3% year‑over‑year, and a net loss of $20.3 million. The $39 million transaction represents a premium over the company’s then‑current market capitalization of roughly $26 million, which has attracted a positive market reaction.
Management explained that the transaction will allow the brand to continue under new ownership while returning capital to shareholders. CEO Joe Vernachio said, “This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.” The sale also signals that Allbirds will cease its own operations and focus on winding down.
Shareholders will need to approve the transaction through a proxy statement expected to be filed by April 24, 2026. The company has indicated that the sale will be completed in the second quarter, with net proceeds distributed in the third quarter. Employees and ongoing operations will be affected as the company transitions to a liquidation structure, though specific details on workforce impact have not been disclosed.
The asset sale underscores the challenges Allbirds has faced since its 2021 IPO, when it raised $348 million at a valuation above $4 billion. Rapid expansion, product diversification, and persistent losses have eroded the company’s financial position, prompting the decision to liquidate assets and return value to shareholders.
Investors reacted positively, noting that the sale price exceeds the company’s market capitalization, which has increased demand for the remaining shares.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.