Expedia the global online travel agency network of Expedia.com, Hotels.com, Hotwire.com, Travelocity and many more now adds a new name to its roster. They’ll be purchasing Orbitz for $1.6 billion (at $12 per share).
Building up Expedia’s empire to compete with others in the space. This caused the market prices to shoot up for each of the companies. Orbitz (OWW) going up 24% & Expedia (EXPE) up about 4% since the announcement. The travel mogul has spent the last year buying multiple brands to grow their customer base. Buying out Australia based company Wotif Holdings Ltd & Travelocity for over $800+ million.
Barney Harford CEO of Orbitz & former employee of Expedia had this to say about the acquisition.
Our mission at Orbitz Worldwide has been to build our brands to be the world’s most rewarding places to plan and purchase travel. We’re excited for Orbitz Worldwide to join the Expedia family and for our teams to work together to further enhance the offerings we provide to our customers and partners.
Travel industry has been gaining in competition with the sprout of services such as Kayak, Hipmunk, Airbnb & so on. Expedia last week reported their 4th quarter profits which were a bit low due to foreign exchange costs. While Orbitz this Thursday is due to release their quarterly reports so we’ll see the insight into how they did Q4.
We’ll have to wait to see how the series of acquisitions plays out in the 2015 year for the Expedia empire.