Re:Airbnb Files to Raise $850M at $30B Valuation
by Hinrik on Saturday August 06, 2016 @04:04AM
(#12237474)
> What exactly does a web site like Priceline.com need $3.4 billion in cash and $2.6 billion in net income for?
It doesn't. Priceline.com is a very small part of PCLN. It's mostly Booking.com.
Re:Airbnb Files to Raise $850M at $30B Valuation
by forgetsusername on Saturday August 06, 2016 @07:55AM
(#12237812)
>What exactly does a web site like Priceline.com need $3.4 billion in cash and $2.6 billion in net income for?
They're publicly owned companies that make a profit for shareholders.
Expedia -- $17 billion market cap, $7.7 billion sales, $2.3 billion cash
That's just two competitors that Airbnb is squaring off against, and you're wondering why they'd want more capital?
Priceline.com just keeps expanding, getting bigger and bigger, making more and more money, accumulating more and more cash, when will it stop? What exactly does a web site like Priceline.com need $3.4 billion in cash and $2.6 billion in net income for? Those questions make as much sense as wondering why Airbnb would want to raise $850 million.
How about if Airbnb wants to acquire the next Homeaway for $3.9 billion in cash + equity? Or they want to buy the next Kayak for $1.8 billion in cash? Or if they want to buy Zillow? Why not? Those are perfectly valid business expansion opportunities and they're expensive.