Airbnb received $1 billion in investment: will support its long-term investment efforts


Sina science and technology news in the early morning of April 7, Beijing time, according to foreign media reports, although the new crown virus crisis hit the tourism and hotel industry in particular, the home stay platform airbnb will still receive $1 billion in investment.
Private equity firms Silver Lake and six Street partners (hereinafter referred to as “Six Street”) will invest US $1 billion in the form of bonds and equity in the company, which will support the ongoing long-term investment work of Abbey, according to a statement released by Abbey.
Epeying did not disclose the terms of the financing round and the latest valuation, but according to two sources familiar with the situation, the company reduced its internal valuation to $26 billion in early March from $31 billion when it raised funds in 2017. The financing comes at a time when the global new crown virus pandemic has damaged the tourism industry. The crisis has led to the plight of ebbing, a start-up company, which is facing a decline in pre orders. In the past month, the shares of Expedia and booking, the tourism stocks, have fallen about 40% and 17%, respectively.
As the new coronavirus epidemic led to a sharp fall in the stock market, venture capital transactions showed a downward trend, and Abbey is facing up against the trend. Some investors said they expected the financing round of start-ups to stagnate as a whole, and the valuation would not be as jaw dropping as before.
In the past few weeks, epeying has attracted a lot of interest from investors, including silver lake and IXth street.
In the United States, there has been an increase in private equity deals involving technology companies in recent years, as some of the best-known companies in the industry have increased their investment in technology start-ups. Twitter announced in early March that it had received $1 billion in investment from silver lake.
Sixth Street was founded in 2009, with seed capital provided by TPG. At present, its total asset management has reached more than 34 billion US dollars.
Morgan Stanley acted as the financial advisor of epeyin and Simpson thacher as the legal advisor. Kirkland & Ellis serves as legal counsel for Silver Lake and six street.
It is not clear how this round of financing will affect the IPO plan of epeyin. The company once said it plans to go public in this year’s IPO (initial public offering), but the economic situation has changed due to the new coronavirus pandemic, which makes the situation unclear again. (Tang Feng)