Expedia Shares Gain on Report That Uber Explored Making a Bid
(Bloomberg) -- Expedia Group Inc. jumped in late trading after the Financial Times reported that Uber Technologies Inc. explored a possible bid for the online travel-booking company.
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The shares climbed as much as 9.3% to $165.85 following the report, which said that Uber had approached advisers in recent months about the idea of a deal.
No formal approach was made to Expedia and there are no current talks, the Financial Times said, citing unidentified people familiar with the matter. Expedia had a market valuation of nearly $20 billion as of Wednesday’s close. Uber, the ride-hailing and food-delivery giant, is worth $172 billion.
For years, Uber has said it wants to become a “super app,” letting travelers and consumers book a range of services. Acquiring Expedia would give it a top reservation service for flights, hotel stays and car rentals, but also further tie it to an unpredictable US market for travel demand. Uber shares slid almost 3% in late trading after the report was published, underscoring investors’ concerns about a deal.
Representatives for the two companies declined to comment to Bloomberg News.
The idea of Uber buying Expedia was initially suggested by a third party, leading the company to assess how such a transaction might be structured, the Financial Times reported. The two businesses already have a connection because Uber Chief Executive Officer Dara Khosrowshahi was previously CEO of Expedia and remains on the board. That means a deal might be friendly but he would probably need to recuse himself from discussions, the FT said.
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