Airbnb and the city of San Francisco have settled a lingering lawsuit over a short-term rental regulation, with the room-booking giant agreeing to require that hosts register with the city before creating listings on its platform. The settlement comes about a year after San Francisco enacted the law in question, which made it illegal for short-term rental companies like Airbnb to collect fees from unregistered rentals.
The presence of the lawsuit in its hometown has been cited as one reason Airbnb hasn’t yet filed for an IPO, a move that would otherwise make plenty of sense for one of the world’s most valuable and (by all appearances) financially healthy private companies. It’s possible the settlement is a step toward a public offering. But Airbnb still has legal battles to fight in several other big markets, including Berlin—which has placed heavy restrictions on room-booking services—and New York, which is cracking down on short-term rentals that break state law. Airbnb was most recently valued at $31 billion with a $555 round led by CapitalG and Technology Crossover Ventures.