Airbnb Inc's board met this week to consider a wide range of options in response to the current economic crisis, which is weighing heavily on the business.[NEW YORK] Airbnb Inc's board met this week to consider a wide range of options in response to the current economic crisis, which is weighing heavily on the business.
The home-rental startup has been approached by a dozen potential investors, according to the people, all of whom asked not to be identified discussing private information. The investors include venture capitalists, private equity firms and sovereign wealth funds, with potential deals ranging in size from US$100 million to US$1 billion, the people said.
At the same time, Airbnb is actively looking at acquiring distressed companies, particularly short-term rental providers, one of the people said. One possible contender is Sonder Inc, a San Francisco-based startup that lists rental units on Airbnb's website. Sonder's bookings are projected to decline 90 per cent as a result of the pandemic, possibly extending to 2021, another person said. However, two people close to Sonder said it hasn't engaged in deal talks.
The situation at Airbnb reflects a grave sense of uncertainty and panic felt across the business landscape, which is forcing most companies to reevaluate plans. Airbnb has said it would go public this year, but the coronavirus pandemic has taken a steep toll on the travel industry. Countries are closing borders to curb the spread of infection, and many places are going into lockdown.
Before the crisis, Airbnb had been leaning toward listing its shares directly for trading on the stock market this year without raising additional capital. It's now reevaluating that position and may instead pursue a more traditional initial public offering to raise cash for the business, people familiar with the matter said.
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