On April 6, Airbnb announced that it has now raised $1 billion USD in debt and equity through two private equity firms, Silver Lake and Sixth Street Partners. The exact terms of the deal have not been disclosed, and it’s also unclear how it could affect Airbnb’s earlier plans in going public.
With the coronavirus pandemic still going on, many governments across the globe have now issued stay-at-home orders and have even closed their borders to international travel, affecting the tourism and hospitality industry.
Silver Lake co-CEO and managing partner Egon Durban said in a statement: “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.
The new deal comes in after Airbnb set aside a $250 million USD fund, adding to aid the reimbursement of hosts which have had their bookings cancelled between March and May due to the coronavirus situation.