Airbnb is a cautionary tale on how not to work with governments...

Airbnb CEO Brian Chesky is facing a tough choice in two of its most prominent markets: New York and San Francisco.Thomson Reuters

Airbnb called it an "unprecedented step" when itdecided to sue its hometown after San Francisco passed stricter home-sharing regulations. In New York, lawmakers voted to fine people who rent their apartment for less than 30 days, a move tech leaders slammed as limiting Airbnb's potential.

The clash in both cities is in part because of Airbnb's own efforts to shape the rules it's now complaining about. And startup political strategist Bradley Tusk doesn't know if Airbnb will be able to overcome the setbacks that Airbnb's political maneuvering has brought upon itself.

"I think it's a real problem. I don't even know how I'd tell them to fix it at this point," Tusk said at a dinner with reporters Wednesday in San Francisco. "I don't think it is fixable, at least in those two cities."...READ MORE HERE