Airbnb receives USD 1 bln from Silver Lake and Sixth Street Partners

Tuesday 7 April 2020 13:27 CET | News

Airbnb has unveiled it will receive USD 1 billion from investors Silver Lake and Sixth Street Partners, as it struggles with a massive drop in business.

Airbnb has suffered from the pandemic, slashing its valuation from USD 31 billion to USD 26 billion, freezing its hiring and marketing as its bookings drop. However, the two Silicon Valley investors offered the money in a combination of debt and equity securities, considering that the company’s business will be sound in the long term.

The new funds will include USD 5 million towards special relief grants to head off a growing rebellion among Airbnb hosts, who accuse it of choosing to protect travellers instead of them by unilaterally changing its cancellation policy to give full refunds at the last minute. Moreover, Airbnb said it would be switching to focus on long-term stays, such as student housing or people away from their homes on extended work assignments.

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Keywords: Airbnb, Silver Lake, Sixth Street Partners, investment, bookings, travel industry, policy, equity securities
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce