Allbirds is selling for $39 million. It raised nearly 10 times that amount in its IPO.

Allbirds, the popular wool sneaker brand that became synonymous with Silicon Valley culture, has made headlines with its recent agreement to sell all assets and intellectual property to American Exchange Group for $39 million. This sale price is a stark contrast to the nearly $348 million raised during its 2021 initial public offering (IPO) and a fraction of the over $4 billion valuation the company achieved on its debut trading day. The transaction is pending shareholder approval and is anticipated to finalize in the second quarter, with funds expected to be distributed to investors in the third quarter. Following the announcement, Allbirds' stock surged by 36% in after-hours trading. The shares had previously closed at $2.98, equating to a market capitalization of $24.5 million, indicating that the sale price offers a premium above the current trading value. The decline of the once-prominent brand has been significant. After its public offering, Allbirds aggressively expanded into physical retail spaces and ventured into new product categories including leggings, jackets, and performance running shoes—moves that ultimately failed to resonate with its core customer base. Co-founder Tim Brown acknowledged that this rapid expansion had compromised the company's foundational identity. American Exchange Group, the buyer, is an established brand management firm that also holds other well-known names in its portfolio like Aerosoles and Jonathan Adler.