News Summary

Allbirds, the eco-friendly sneaker brand popular among Silicon Valley, has agreed to sell its assets and intellectual property to American Exchange Group for $39 million. This sale price is a significant reduction from the $348 million Allbirds raised during its 2021 IPO and its initial $4 billion valuation. The transaction is pending shareholder approval and is expected to finalize in the second quarter, with stockholder payouts anticipated in the third quarter. The sale news caused Allbirds’ share price to increase by 36% in after-hours trading. The company’s decline followed an unsuccessful expansion into physical retail and new product categories, which deviated from its core offerings, according to co-founder Tim Brown. American Exchange Group, which also owns Aerosoles and Jonathan Adler, will acquire the brand’s assets.