On Thursday, Expedia agreed to buy Orbitz Worldwide for about $ 1.3 Billion in cash deal.
Under the terms of the deal, Expedia will pay $12 a share, it is 24 percent premium to Orbitz‘s closing price on Wednesday.
“We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team,” Dara Khosrowshahi, CEO of Expedia, said in a statement. “The Orbitz Worldwide team has built a devoted customer base and we look forward to welcoming them to the Expedia, Inc. family.”
This deal isn’t only one. In the past, Expedia acquired more brands like Wotif Holdings for $ 612 Million or SabreCorp. ’s Travelocity brand for $280 million.
Expedia, which was launched in 1996 by one of divisions of Microsoft, went public in 1999 and has grown into a travel giant with brands like eLong inc., Hotwire , Hotels.com and Trivago.
CEO of Expedia Mark Okerstrom said company still to try to integrate the product. Orbitz’s advisor was Qatalyst Partners, the boutique investment bank, which founded Frank Quattrone.
Mr. Stakebay says :
After Orbitz acquisition, Epxedia would become the biggest company with over 6 % market share and reach to lead over the rival Priceline.com Inc. The travel industry is under pressure from referral sites such as Hipmunk and Kayak, it is start ups of discounts and stays in apartments and spare rooms.
|Revenue||$ 4.771 Billion (2013)||$ 847 Million (2013)|
|Operating income||$ 366.06 Million (2013)||$ 62 Million (2013)|
|Profit||$ 232.85 Million (2013)||$ 165 Million (2013)|
|Total assets||$ 7.739 Billion (2013)||$ 1.108 Billion (2013)|
|Total Equity||$ 2.145 Billion (2013)||$ 42 Million (2013)|
|Employees||14 570 (2013)||1300 (2013)|
President and CEO of Expedia Inc………DARA KHOSROWSHAHI……..2005-present……….$ 7 467 041 (2013)
President and CEO fo Orbitz Inc……………BARNEY HARFORD………..2009-present……….$ 5 265 914 (2013)