Home-Sharing Giant Airbnb Takes on Venerable Lodging Names with Latest Funding (WYN) (AWAY) (H)
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Lodging is becoming big business, but not in the traditional sense.
Today, the WSJ said private equity outfit TPG might lead a round of fundraising which could total $400 to $500 million for Airbnb. That would value Airbnb at around $10 billion.
The $10 billion valuation would put Airbnb, which
One of Airbnb's largest competitors is HomeAway (NYSE: AWAY).
Airbnb also hasn't disclosed revenue or profits since its 2008 founding.
The last round of fundraising that Airbnb did in 2012 put its valuation at $2.5 billion. That series included names like Founders Fund, Andreessen Horowitz and Sequoia Capital.
Airbnb is also clashing heads with the State of New York over its practices. New York Attorney General Eric Schneiderman subpoenaed the company last October, looking for information on 15,000 houses in the state. The AG wants to find out whether Airbnb is violating a 2010 state law that prohibits renters from subletting their homes for less than 30 days if they're not present. The company is currently contesting the order.
Notably, Yahoo! (Nasdaq: YHOO) is said to be mulling a larger takeover of some sort after Alibaba conducts its IIPO later in 2014. With over $10 billion in expected cash following the event, Airbnb might fall into the mix somewhere, though it's highly unlikely that Yahoo! would acquire that company versus a Zillow-like listing company. That's just our speculation.
Today, the WSJ said private equity outfit TPG might lead a round of fundraising which could total $400 to $500 million for Airbnb. That would value Airbnb at around $10 billion.
The $10 billion valuation would put Airbnb, which
is a website for people to rent out lodging, including private rooms, entire apartments, castles, boats, manors, tree houses, tipis, igloos, private islands and other properties,above many of its hotel peers, including Wyndham (NYSE: WYN) and Hyatt (NYSE: H). Guests can rent out from users that list rooms and such available, Airbnb collects the payments and keeps a portion for itself.
One of Airbnb's largest competitors is HomeAway (NYSE: AWAY).
Airbnb also hasn't disclosed revenue or profits since its 2008 founding.
The last round of fundraising that Airbnb did in 2012 put its valuation at $2.5 billion. That series included names like Founders Fund, Andreessen Horowitz and Sequoia Capital.
Airbnb is also clashing heads with the State of New York over its practices. New York Attorney General Eric Schneiderman subpoenaed the company last October, looking for information on 15,000 houses in the state. The AG wants to find out whether Airbnb is violating a 2010 state law that prohibits renters from subletting their homes for less than 30 days if they're not present. The company is currently contesting the order.
Notably, Yahoo! (Nasdaq: YHOO) is said to be mulling a larger takeover of some sort after Alibaba conducts its IIPO later in 2014. With over $10 billion in expected cash following the event, Airbnb might fall into the mix somewhere, though it's highly unlikely that Yahoo! would acquire that company versus a Zillow-like listing company. That's just our speculation.
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