Expedia Stock Jumps 6% as Uber Reportedly Considers Major Acquisition
Expedia’s stock jumped 6% amid reports that Uber might buy the travel company, sparking speculation about a $20 billion deal. Here’s what you need to know
Expedia’s stock jumped by 6% on Thursday after rumors spread that Uber may be looking to buy the travel booking company. Reports suggest that Uber has been exploring this idea and discussing it with advisors in recent months, though talks are still in the early stages.
Uber’s CEO and His Connection to Expedia
One of the reasons Uber is eyeing Expedia could be the connection between the two companies’ leadership. Uber’s CEO, Dara Khosrowshahi, was previously the CEO of Expedia. During his time there, he played a huge role in making the company one of the largest travel platforms globally. Even though Khosrowshahi left Expedia in 2017 to lead Uber, he still holds a non-voting position on Expedia’s board of directors. Should the talks between the companies progress, it’s likely Khosrowshahi will step back from any decision-making to avoid any conflicts of interest.
Why Uber Might Want to Buy Expedia
The potential deal makes sense when you look at Uber’s recent expansion into new areas beyond ride-hailing. Uber has been moving into food delivery, freight transportation, and even travel bookings. By acquiring Expedia, Uber would be adding a powerful travel booking platform to its range of services, making it easier for users to not only hail a ride but also book flights, hotels, and more—directly through Uber’s app.
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Market Reaction to the News
Although nothing formal has been announced, the stock market quickly reacted to the rumors. Expedia’s stock surged by 6%, reflecting investor excitement about the possibility of a major deal. Over the past year, Expedia has already seen a 50% increase in stock value, largely due to the rise in travel following the pandemic. On the other hand, Uber’s stock fell slightly by 3% after the news but is still up by 84% over the past year.
If this deal happens, it could be Uber’s biggest acquisition yet. With Expedia valued at around $20 billion, the potential buyout would show Uber’s commitment to growing its influence not only in transportation but also in travel.
Uber’s Future Plans and Strategy
Uber hasn’t just been looking to acquire companies in the travel industry. The company has also invested in autonomous driving technology and partnered with key players in the field to push its self-driving vehicle efforts. Adding a company like Expedia to its portfolio would allow Uber to offer a more complete travel experience, from booking flights and hotels to arranging rides.
While it’s still uncertain whether Uber will actually move forward with the acquisition, the possibility reflects the company’s ambition to expand into more industries and become a leader in both transportation and travel services.
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