Airbnb Raises $1 Billion But Future is Still Cloudy

By Kurt Stolz on 7 April 2020
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Airbnb is headquartered in the Bay Area

Airbnb, the startup that built an online marketplace for lodging at people’s homes, said Monday it had raised $1 billion in financing to weather the current storm.

The travel company that caused major hotel chains to enter the marketplace, was already losing money but, thanks to the coronavirus pandemic, bookings have plummeted.  CEO Brian Chesky, however, maintains that business will bounce back after the pandemic, although it is unclear how long the coronavirus outbreak will last or what the impact to the global and U.S. economies will be.  It has yet to be determined how people will feel about staying in other people’s homes after the pandemic.

The company raised $1 billion in debt and equity from Silver Lake and Sixth Street Partners, it said. Airbnb had planned to go public this year but it may put those plans on hold.

Some analysts believe that the company could run out of cash, even with the investment.

(Photo: Accura Media Group)

Accura News

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