As its global host network struggles and its planned initial public offering faces uncertainty, Airbnb is landing a financial lifeline to help it weather the coronavirus storm.
The home-sharing company is raising $1 billion in equity and debt from private-equity firms Silver Lake and Sixth Street Partners, the Wall Street Journal reported. About $5 million of that total will go towards a Superhost relief fund, used to provide $15 million in grants to hosts who rent out their own homes or offer classes and tours.
Terms of the deal were not disclosed. Airbnb was valued at $31 billion when it last raised money in 2017, though the firm is now reportedly valuing itself at less than that internally. The company has lost hundreds of millions of dollars this year, a source told the Journal.
Founded during the last recession, Airbnb has seen pressure from employees to go public for years. The company once planned to go public through a direct listing which would not raise additional money, but has since considered an IPO as well. [WSJ] — Kevin Sun