Airbnb said on Monday private equity firms Silver Lake and Sixth Street Partners will invest US$1 billion in the US home rental company, bolstering its finances at a time when the coronavirus outbreak has roiled the travel and leisure industry.[BENGALURU] Airbnb said on Monday private equity firms Silver Lake and Sixth Street Partners will invest US$1 billion in the US home rental company, bolstering its finances at a time when the coronavirus outbreak has roiled the travel and leisure industry.
The investment, which was mixture of debt and equity, raises Airbnb's cash reserves to around US$4 billion. The company said it would use the funds primarily to attract more hosts, or homeowners who list their properties for rent on the company's platform. Silver Lake and Sixth Street were among around 20 investors which approached Airbnb about investing in the company, according to people familiar with the matter.
"While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring. Airbnb's diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it," Silver Lake co-chief executive officer and managing partner Egon Durban said in a statement.
Financial details of the deal were not disclosed. Airbnb lowered its internal valuation by 16 per cent to US$26 billion in early March, Reuters reported.
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