Allbirds Sells Assets to Exchange Group for $39M

Allbirds, the eco-friendly footwear company once valued at $4 billion, has agreed to sell its intellectual property, assets, and liabilities to American Exchange Group for $39 million, marking a dramatic downturn for the brand known for its sustainable wool sneakers.

The deal, announced this week, requires approval from shareholders and is expected to close in the second quarter of 2026. Following the transaction, Allbirds plans to dissolve, with net proceeds distributed to stockholders in the third quarter after accounting for wind-down costs. The sale price represents a premium over the company's recent market value; shares closed Monday at $2.98, giving Allbirds a market capitalization of about $24.5 million, and rose 36 percent in after-hours trading on the news.

Founded in 2014 by former New Zealand soccer player Tim Brown and biotech engineer Joey Zwillinger, Allbirds gained rapid popularity with its Wool Runner sneakers, made from merino wool, recycled plastic laces, and a sugarcane-based midsole. The lightweight, comfortable shoes appealed to Silicon Valley professionals and celebrities, including former President Barack Obama and actor Leonardo DiCaprio. The company's...