The Early Blogger

Google to Buy Expedia? Is this true? Yes!, A month from now rumors has been circulating the internet that Google may prowl to swallow up Expedia.com. Expedia which currently has a market cap of $2.24 Billion could probably be acquired by Google for around $3 billion, give or take a couple hundred million dollars. Expedia finds the best travel deals on anything from hotels, to airfare, to rental cars, to Cruises, and to travel activities. Their service really is top of the line. Take it from someone who just purchased airline tickets from them a few months back at a rate, which in my opinion was phenomenal. Google could take the current setup and work it into their search results. So if someone was to search for “cheap airfare from New York to Los Angeles” the Expedia prices would quickly pop up in the actual search results without you even having to visit their site. This is a sure advantage for Google who would be taking advantage of Economies of scope. The two companies are sure complements to one another, and any regulatory concerns will not be a factor. Will the deal go through? I certainly think we will be hearing more about this possible acquisition in the days and weeks ahead. With market values for companies’ way down, it is an ideal time for larger companies to shop around for cheap acquisitions. Note that Expedia stock is currently trading at about a 70% discount from last years highs.

But the stock of Expedia (EXPE) and Google (GOOG) have gone up considerably. Would this acquisition on Google’s part make sense?