$10B is the new $1B: P-E firm TPG will reportedly lead a funding round (potential size of $400M-$500M) in home/apartment rental platform Airbnb that will give it a valuation bigger than that of many of the world's largest hotel operators.
Airbnb's site and apps offer 600K+ rental listings spread out over 34K+ cities in 192 countries. The company, which receives a cut on enabled rentals, has been tight-lipped about revenue.
The report is the latest proof of soaring valuations for late-stage private tech companies. This year has already seen Facebook pay $19B for WhatsApp, and Dropbox raise funding at a $10B valuation. Analytics software vendor Palantir raised funding last fall at a reported $9B valuation.
HomeAway (AWAY - $3.9B market cap) competes a bit with Airbnb, but CEO Brian Sharples insists the overlap between the companies is limited for now. "Almost all their inventory is primary homes and rooms in metro areas, and we’re all second homes in vacation markets ... Could the two business models collide over the long-term? I think they could."
Airbnb recently ended its first national ad campaign after HomeAway sued the company for misappropriating HomeAway's birdhouse trademark in its ads.