NEW YORK—Expedia has stepped up its push to become a one-stop hub for all things vacation and travel with its planned buyout of HomeAway, a vacation-rental company.
The $3.9 billion deal announced late Wednesday would further consolidate an industry which is becoming increasingly competitive.
Expedia already has an arsenal of offerings, including Orbitz, Travelocity and Cheap Tickets.
Expedia stands to benefit from the deal by adding HomeAway’s core market to its umbrella of offerings and by bringing its scale to bear against rival vacation rental operations, including Airbnb.
HomeAway will benefit from Expedia’s sheer scale and its experience in marketing and ad optimization, according to Jefferies analyst Brian Fitzgerald, in a note to investors.
Both companies’ boards have approved the deal and it is expected to close next year.
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