Allbirds set for $39M sale after raising nearly 10x more in IPO

Allbirds, once a standout name in Silicon Valley’s startup and fashion scene, has agreed to sell all of its assets and intellectual property to American Exchange Group for $39 million. The deal highlights a dramatic shift in the company’s fortunes, as the sale price is roughly one-tenth of the $348 million it raised during its 2021 IPO and a small fraction of the more than $4 billion valuation it briefly achieved on its first day of trading.

The transaction is still subject to shareholder approval and is expected to close in the second quarter of the year. If completed as planned, proceeds from the sale are anticipated to be distributed to shareholders during the third quarter. Following the announcement, shares of Allbirds surged by 36% in after-hours trading. Before the news, the stock had closed at $2.98, giving the company a market capitalisation of approximately $24.5 million. In that context, the agreed $39 million sale price represents a premium over its recent market value.

The company, now 11 years old, experienced a well-documented decline after going public. In the years following its IPO, Allbirds pursued rapid expansion, entering physical retail and branching into new product categories such as leggings, jackets, and performance running shoes. These efforts, however, failed to resonate with its core customer base, leading to mounting losses. Co-founder Tim Brown later acknowledged that the company’s aggressive growth strategy had diluted its original identity, stating that the expansion cost the brand “some of our DNA.”

The acquiring company, American Exchange Group, is a privately held firm with nearly two decades of experience in brand management. Its portfolio includes established names such as Aerosoles and Jonathan Adler. The deal marks a significant turning point for Allbirds, reflecting both the challenges of scaling a consumer brand after a high-profile IPO and the shifting dynamics of the retail and direct-to-consumer market.