Airbnb 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 investment, which was a mixture of debt and equity, values the home rental company at around $18 billion, according to Reuters.
- Times have changed: In 2017, the last time Airbnb raised money, it was valued at $31 billion. The company has racked up hundreds of millions of dollars in losses this year. Airbnb’s cash reserves now stand at around $4 billion, and the company is in talks with banks about a new line of credit that could be worth as much as $1 billion.
- Problems with refund policy: Several Airbnb guests told CNBC they’re being offered travel credits instead of cash, and they cannot get full cash refunds unless they show documentation proving that they’re subject to travel restrictions or fit into other categories. Hundreds of customers have taken to Reddit and Twitter to complain about how difficult it has been for them receive a cash refund for their reservations.