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March 20, 2020, 1:16 p.m. EDT

Airbnb racks up hundreds of millions of dollars in losses, considers capital raise--WSJ

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By Tomi Kilgore

Airbnb Inc. has racked up hundreds of millions of dollars in losses this year, as the coronavirus pandemic has wreaked havoc on the home-sharing company's business, according to a report in The Wall Street Journal . Citing people close to the company, the company is considering raising capital from new investors, and may alter its plan go public via a direct listing, which wouldn't involve raising money, the WSJ report said. The company is now considering using an initial public offering to raise cash, but the equity market and its finances would need to stabilize and the virus crisis would first need to stabilize before it can go ahead with an IPO, the WSJ report said. The report added that Airbnb was unlikely to attract investors at its 2017 valuation of $31 billion, when it last raised money. The Renaissance IPO ETF /zigman2/quotes/207665280/composite IPO +4.55% has lost 32.2% over the past month, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% has dropped 29.1%.

US : U.S.: NYSE Arca
$ 36.73
+1.60 +4.55%
Volume: 9,290
May 29, 2020 3:59p
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p

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