Airbnb Plans to Acquire Xiaozhu

2024-03-25 11:50:41 Business

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Airbnb Inc. is in advanced stages of negotiations to obtain China?s Xiaozhu.com in a bid to grow in the country'slocallease sharing sector.

According to sources close to the matter, the twofirms have partakenin severaldiscussions with negotiations now reaching a near conclusion.

?Given the reported nature of the talks between the two companies, it seems that a deal is very likely,? said Vivian Wang, Chief Economist at JSW Corporation.

Although Airbnb is currently the largest and most popularchannel for owners to lease out their properties to global travelers,it is contending with more entrenched local competitors like Tujia.com and Xiaozhu in China. With plans to increase its number of employees to 300, US based Airbnb already lists approximately 75000 properties in China.

?Should the deal be successfully completed, Airbnb will gain a significant foothold in the world?s most populous nation,? added Shenzhen based JSW Corporation?s Wang

Airbnb and Xiaozhurefused to offer any official comment either confirming or denying rumours that they were in talks over a possible deal.

Xiaozhu would presentAirbnbwith asizeableadvancement in the world?s second biggest economy. Founded in 2012, the Chinese startup recently raised around $65 million of additional funding and has reported as many as 100,000 listings and 10 million active users with in more than 300 cities.

It has been reported that the startup expects to deliver 500 percent organic growth this year alone.

A deal for Xiaozhu would also aidAirbnbin lessening the risk of anexpensiveskirmish for market share. Uberreportedly lost in excess of $1 billion in China in a battle with DidiChuxingprior to deciding to sell its China division to the competitor.

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