Expedia is raising $3.2 billion to weather the Covid-19 storm as it announced a new permanent chief executive.
The dramatic slump in travel demand due to the pandemic will lead to furloughs and top executives will take pay cuts.
The new funding comes from equity investments totaling $1.2 billion from PE firms Apollo and Silver Lake and an additional $2 billion in debt.
Expedia’s immediate goal now is ‘to conserve cash, survive, and use this time to reconstruct a stronger enterprise’ said chairman Barry Diller.
Diller announced current board vice chairman Peter Kern as new CEO.
"In these last five months, he has shown outstanding leadership in all aspects of the business, first in a wide reorganization and then dealing with the impact of the Corona crisis on our business," Diller said of Kern.
"He now knows all aspects of the business, and we are truly lucky that he is now available to devote his full time to Expedia."
