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Airbnb Raises $1 Billion to Stockpile Cash in Pandemic Airbnb Raises $1 Billion to Stockpile Cash in Pandemic
(7 days later)
SAN FRANCISCO — Airbnb said on Monday that it had raised $1 billion in new funding as it grapples with devastation from the coronavirus pandemic, and as some technology start-ups take extra measures to stockpile cash during the outbreak.SAN FRANCISCO — Airbnb said on Monday that it had raised $1 billion in new funding as it grapples with devastation from the coronavirus pandemic, and as some technology start-ups take extra measures to stockpile cash during the outbreak.
The private equity giant Silver Lake and the investment firm Sixth Street Partners led the investment, which was a mixture of equity and debt. Airbnb, a home rental start-up that was previously valued at as much as $31 billion, also lowered its internal valuation to $26 billion last month, according to a person with knowledge of the situation who declined to be identified because the information was confidential.The private equity giant Silver Lake and the investment firm Sixth Street Partners led the investment, which was a mixture of equity and debt. Airbnb, a home rental start-up that was previously valued at as much as $31 billion, also lowered its internal valuation to $26 billion last month, according to a person with knowledge of the situation who declined to be identified because the information was confidential.
“The new resources will support Airbnb’s ongoing work to invest over the long term in its community of hosts who share their homes and experiences,” the company said in a statement.“The new resources will support Airbnb’s ongoing work to invest over the long term in its community of hosts who share their homes and experiences,” the company said in a statement.
Airbnb’s business has been hobbled during a shutdown in global travel caused by the spread of the coronavirus. It is a delicate time for the company, one of the largest and most prominent start-ups to emerge from Silicon Valley in the last decade. Airbnb had said that it plans to go public this year. But that may be in limbo because of stock market volatility and uncertainty caused by the virus.Airbnb’s business has been hobbled during a shutdown in global travel caused by the spread of the coronavirus. It is a delicate time for the company, one of the largest and most prominent start-ups to emerge from Silicon Valley in the last decade. Airbnb had said that it plans to go public this year. But that may be in limbo because of stock market volatility and uncertainty caused by the virus.
Airbnb’s new funding points to some of the tactical measures start-ups are taking as they navigate the difficult period. In the last month, numerous start-ups have laid off or furloughed staff, and cut spending and expansion plans in moves that signal the end of a long-running boom for the industry. Well-funded travel start-ups, including Sonder, Lyric and TripActions, have been hit especially hard.Airbnb’s new funding points to some of the tactical measures start-ups are taking as they navigate the difficult period. In the last month, numerous start-ups have laid off or furloughed staff, and cut spending and expansion plans in moves that signal the end of a long-running boom for the industry. Well-funded travel start-ups, including Sonder, Lyric and TripActions, have been hit especially hard.
Airbnb, too, enacted a hiring freeze, slashed its $800 million marketing budget and cut the pay of its top executives last month. The company raised more money even though it has $3 billion in cash on its balance sheet and access to a $1 billion line of credit.Airbnb, too, enacted a hiring freeze, slashed its $800 million marketing budget and cut the pay of its top executives last month. The company raised more money even though it has $3 billion in cash on its balance sheet and access to a $1 billion line of credit.
A company spokesman declined to comment on what the new funding meant for an I.P.O. Airbnb is under pressure to go public before some of its early employees’ shares begin to expire later this year.A company spokesman declined to comment on what the new funding meant for an I.P.O. Airbnb is under pressure to go public before some of its early employees’ shares begin to expire later this year.
The difficulties Airbnb is facing have become increasingly apparent over the past few weeks. The company has contended with frustrated customers who demanded refunds for canceled trips, while also trying to find ways to support its “hosts,” the people who rent their homes on its site.The difficulties Airbnb is facing have become increasingly apparent over the past few weeks. The company has contended with frustrated customers who demanded refunds for canceled trips, while also trying to find ways to support its “hosts,” the people who rent their homes on its site.
Many of its hosts have had their bookings drop to zero over the past few months. The financial struggles of short-term-rental operators have manifested themselves in online petitions and threats of lawsuits against the company.Many of its hosts have had their bookings drop to zero over the past few months. The financial struggles of short-term-rental operators have manifested themselves in online petitions and threats of lawsuits against the company.
On March 30, Brian Chesky, Airbnb’s chief executive, held a video call with the company’s hosts and said the past few weeks had been a “wake-up call.” He announced a $250 million fund to compensate hosts for a portion of their booking cancellations, as well as a $10 million pool of grant money for its “Superhosts,” paid for by Airbnb’s founders and employees.On March 30, Brian Chesky, Airbnb’s chief executive, held a video call with the company’s hosts and said the past few weeks had been a “wake-up call.” He announced a $250 million fund to compensate hosts for a portion of their booking cancellations, as well as a $10 million pool of grant money for its “Superhosts,” paid for by Airbnb’s founders and employees.
“I’m sorry we didn’t consult you as partners,” Mr. Chesky said on the call.“I’m sorry we didn’t consult you as partners,” Mr. Chesky said on the call.
In its funding announcement, Airbnb said it would now focus on travel that’s closer to home and long-term stays, including students and people on extended work assignments.In its funding announcement, Airbnb said it would now focus on travel that’s closer to home and long-term stays, including students and people on extended work assignments.
Updated July 7, 2020
The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
“The desire to connect and travel is an enduring human truth that’s only been reinforced during our time apart,” Mr. Chesky said in a statement on Monday. He added that, practically speaking, the way we connect and travel “will evolve as the world changes.”“The desire to connect and travel is an enduring human truth that’s only been reinforced during our time apart,” Mr. Chesky said in a statement on Monday. He added that, practically speaking, the way we connect and travel “will evolve as the world changes.”
Last month, Airbnb began fielding new and unsolicited funding offers from venture capital firms, private equity firms and sovereign wealth funds, a person familiar with the situation said at the time. Offers ranged from $100 million to $1 billion, the person said.Last month, Airbnb began fielding new and unsolicited funding offers from venture capital firms, private equity firms and sovereign wealth funds, a person familiar with the situation said at the time. Offers ranged from $100 million to $1 billion, the person said.
Private equity firms like Silver Lake are sitting on large reserves of cash. Many of the firms said they saw investment opportunity as American businesses struggle.Private equity firms like Silver Lake are sitting on large reserves of cash. Many of the firms said they saw investment opportunity as American businesses struggle.
In a statement, Egon Durban, co-chief executive of Silver Lake, said Airbnb was well positioned to thrive when the world recovers from the virus.In a statement, Egon Durban, co-chief executive of Silver Lake, said Airbnb was well positioned to thrive when the world recovers from the virus.
“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,” he said.“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,” he said.