Airbnb has racked up hundreds of millions of dollars in losses this year.
Photo: gabrielle lurie/ReutersAirbnb Inc. is raising $1 billion in funding from private-equity firms Silver Lake and Sixth Street Partners as the company reels from a global hit to its business caused by the coronavirus pandemic.
The San Francisco-based startup said Monday the funding will be a combination of debt and equity and is meant to support Airbnb’s long-term work, including its network of hosts and stakeholders.
The home-sharing company said about $5 million of the investment will go toward a Superhost relief fund. That money will be used to provide grants worth a combined $15 million to hosts who rent out their own home and need help paying their rent or mortgage, as well as long-tenured hosts who offer classes and tours through its Experiences business who may need help.
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Airbnb’s stated plans to go public this year have been a subject of scrutiny and uncertainty as the pandemic devastated global travel. The San Francisco-based lodging marketplace was considering raising capital from new investors as losses escalated, people close to the company said last month.
Terms of the investment weren’t disclosed. In 2017, the last time Airbnb raised money, it was valued at $31 billion. In February, the Journal reported that Airbnb was already internally valuing the company below that level.
The company has racked up hundreds of millions of dollars in losses this year, a person familiar with the matter has said.
Airbnb had planned to go public through a direct listing, which wouldn’t involve raising additional money, but as revenue evaporates the company also has been considering raising cash through an initial public offering, people familiar with the situation have said.
Brian Chesky, Airbnb’s chief executive, is under intense pressure from employees to go public, after more than 10 years as a private company.
Write to Kimberly Chin at kimberly.chin@wsj.com
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Airbnb Raises $1 Billion From Silver Lake, Sixth Street Partners - The Wall Street Journal
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