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This looks like a prototype balloon. Active negotiations are not progressing. But it makes intuitive sense given Uber CEO Dara Khosrowshahi’s past and current ties to Expedia.
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In a speculative report in the FT this evening, in what would be the dream come true for travel industry traders everywhere, Uber has been considering acquiring Expedia in recent weeks.
An Expedia spokesperson told Skift that the company had no comment. No formal approach has been made to Expedia and there are currently no active discussions taking place.
Why it matters: This is Uber’s biggest acquisition to date and significantly expands its ambitions beyond ride-hailing and into travel booking. Also, for Uber CEO Dara Khosrowshahi, who was CEO of Expedia Group from 2005 to 2017 and currently serves as a non-executive director, it is a kind of It will be a return to his hometown.
Behind the scenes:
Uber has approached advisers in recent months to explore the feasibility of a deal with Expedia, the Financial Times reported, citing people familiar with the matter. Any approach is likely to be “friendly” and Mr. Khosrowshahi is likely to withdraw from negotiating a deal. Khosrowshahi is a protégé of Expedia executive chairman Barry Diller.
Key number:
• Uber market capitalization: $173 billion
• Expedia’s market cap: Just under $20 billion.
Expedia has been forced to lower its forecasts at various points this year. In the first quarter, the company noted that Vrbo, its vacation rental booking brand, had a slower-than-expected recovery. For the second quarter, he pointed to a “challenging macro environment and a slowdown in travel demand.”
For more than a year, executives have touted a technology migration plan that would move many brands onto one platform. It’s done, but the reward hasn’t arrived yet.
One bright spot in the second quarter was an increase in room reservations. Across Expedia Group, which includes Expedia.com, Hotels.com, Vrbo and other brands, room bookings increased 10%. That’s the fastest increase in more than a year and faster than the gains at Airbnb and Booking Holdings.
