New information has been released regarding Airbnb's bid to offer its services worldwide as the company is now under negotiations to acquire China's home accommodation service firm Xiaozhu.

According to sources, should the acquisition push through, it would be the largest deal in China's home sharing service industry as Xiaozhu is currently valued at $300 million. It would also be beneficial for both countries because Airbnb will get inside the very lucrative Chinese market which is considered one of the largest outbound tourist markets in the world. Airbnb would also be able to easily cope up with the Chinese regulatory challenges regarding the home sharing industry as Xiaozhu will be able to act as its support base.

For Xiaozhu, the deal would be able to expand its operations as the firm currently has 30 staff members and hold 75,000 home listings in China and 3 million global listing. It would also gain support from Airbnb as they deal with the changing industry now that the smaller companies are now being acquired or being shut down.

Xiaozhu has also taken some hits during this period as its fund raising programs did not succeed and only raised $65 million from investors early this month. However, this did not stop the company from being second in the industry with more than 100,000 listings and 10 million users checking the site.

Currently, it is Tujia who leads China's home sharing company as it has 400,000 listings and raised $400 million from investors. This increase is due to its acquistion of Ctrip's vacation rental business and gained control over holiday rental company Mighty Talent.