Once a Silicon Valley favourite, sustainable footwear brand Allbirds has agreed to sell its assets and intellectual property to American Exchange Group for $39 million, according to TechCrunch.
The deal, which remains subject to shareholder approval and requires a proxy filing, is expected to close in the second quarter of 2026, with the distribution of net proceeds to shareholders scheduled for Q3, according to a company announcement. The transaction will effectively transfer Allbirds’ core business and brand IP to American Exchange Group, while Allbirds Inc. remains a corporate entity.
Allbirds went public in 2021, raising $348 million at a valuation above $4 billion on its first day of trading, as reported by TechCrunch and Forbes. But the company’s fortunes have since reversed. Shares recently closed at $2.98, valuing the business at roughly $24.5 million, meaning the $39 million sale price represents a premium over its current market cap, according to TechCrunch.
Following the announcement, Allbirds’ stock surged 36% in after‑hours trading.
Expansion missteps and mounting losses
Founded in 2015 by Tim Brown and Joey Zwillinger, Allbirds built its brand around minimalist design and natural materials such as Merino wool, tree fibre, and sugarcane‑based foam. Its first product, the Wool Runner, became a status symbol among tech workers, earning Allbirds a reputation as a climate‑friendly disruptor in footwear, according to retrospective coverage in The Business of Fashion.
However, rapid expansion after its IPO diluted the company’s focus. Allbirds opened dozens of stores and expanded into new categories, such as leggings, jackets, and performance running shoes, that did not resonate with its core customers. Revenue began falling in 2022, and losses reportedly swelled to $419 million by 2024, according to Forbes’s 2026 analysis.
If completed, the sale will mark a striking comedown for one of the most visible names in the direct‑to‑consumer movement. Allbirds’ fall mirrors broader headwinds hitting digitally native lifestyle brands, many of which have faced profitability challenges as growth capital dried up.
For Allbirds, the deal with American Exchange Group represents both an exit and the likely end of its brief run as one of Silicon Valley’s most celebrated consumer IPOs.
