Orbitz, the online travel agent, is looking for buyer, according to a report on Tuesday.
The firm is drawing interest from several private equity firms, Bloomberg News said, citing people familiar with a potential sale.
Specifically, Orbitz Worldwide Inc., which runs Cheaptickets.com and Orbitz.com, is working with a financial adviser as it reaches out to potential buyers, Bloomberg reported.
Shares of Orbitz Worldwide Inc. jumped to a 52-week high on Tuesday after the Bloomberg report was published.
Per Bloomberg:
Orbitz has long been the smallest player in online travel without the benefit of economies of scale, according to Daniel Kurnos, an analyst at Benchmark Co. The company may be seeking to gain that scale in an increasingly competitive space, he said. U.S. airlines are flying at record capacity in the U.S. as fuel — their largest expense — is at the lowest level in six years.
“Someone from the outside looking for a a foothold in the industry” would be a logical suitor for Orbitz, Kurnos said, including Google Inc.
Aaron Stein, a spokesman for Google, didn’t immediately respond to a voice mail seeking comment.
In a statement to The Associated Press, an Orbitz spokesman said the company won’t comment on rumors or speculation about potential sales or transactions involving the firm.
