Airbnb raises $1 billion from investors as the company takes a big hit from the coronavirus crisis
- Airbnb has raised $1 billion in debt and equity from Silver Lake and Sixth Street Partners, the company announced Monday.
- Airbnb did not disclose the terms of the deal, but a source told CNBC that "it's attractive for Airbnb" and doesn't depend on the company's financial performance or ability to go public by a specific date.
- Airbnb planned to go public this year, but has been hit hard by the coronavirus crisis on top of existing questions about profitability, with its valuation reportedly falling from $31 billion to $26 billion.
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Airbnb has raised $1 billion in "a combination of debt and equities securities" from Silver Lake and Sixth Street Partners, the company announced in a press release Monday.
The company did not disclose the terms of the deal or say how much of the investment is debt versus equity, but a source told CNBC that "there is no rachet or any other coercive terms. It's attractive for Airbnb," adding that it doesn't depend on the company's financial performance or ability to go public by a specific date.
Last week, the Financial Times reported that the company lowered its internal valuation to $26 billion, a 16% decrease from its last private valuation of $31 billion, according to PitchBook, as the short-term rental company deals with a sharp drop in bookings due to the coronavirus pandemic.
Airbnb CEO Brian Chesky predicted earlier this week that the company's business will bounce back following the coronavirus pandemic, saying that it has weathered crises before. Some experts have agreed with that assessment, though Airbnb will still have to overcome some huge obstacles before it can thrive again.
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