Airbnb Inc’s new USD 1 billion investment from private equity firms Silver Lake and Sixth Street Partners has terms that imply a reduced valuation of the home rental company, people familiar with the matter said on Tuesday.
Silver Lake and Sixth Street received warrants that can be exercised at a USD 18 billion valuation, below the USD 26 billion Airbnb was valued in early March in its internal valuation, one source said.
The deal raised Airbnb’s cash reserves to around USD 4 billion.
Silver Lake is targeting a valuation for Airbnb of USD 40 billion to USD 50 billion to hit its return target, one of the sources said, declining to provide more details.
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