Through this turnover of ownership, Expedia becomes a direct competition of AirBnB
Gone were the days of grueling travel bookings. For years, Expedia had been the leader for online travel booking from plane tickets to hotel accommodation. But now they wanted to expand even more and looked into the market of vacation rental services like HomeAway which they agreed to acquire for $3.9 billion in cash and Expedia common stock.
Founded in 2005, HomeAway which was conceived in Austin, Texas had already raised $505 million in five funding rounds since 2011. The acquisition is set to be closed by early 2016 with Expedia buying each share for $10.15 in cash and 0.2065 of a share in Expedia common stock.
Currently there are about a million paid vacation rental homes in 190 countries which HomeAway carries on their site. They also have other rental site in the UK, Germany, Spain, Australi, New Zealand, Brazil, and France like VRBO.com and VacationRental.com. The site BedandBreakfast.com is also opereated by Homeaway.
The acquisition is set to be closed by early 2016 with Expedia buying each share in cash and Expedia common stock
Through this turnover of ownership, Expedia becomes a direct competition of AirBnB as the former also owns other site including Hotels.com, Hotwire.com, Venera, Orbitz, and Travelocity.
“We have long had our eyes on the fast growing ~$100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years,” said Dara Khosrowshahi, the CEO of Expedia in today’s announcement. “Bringing HomeAway into the Expedia, Inc. family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step.”
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