Expedia buys Orbitz for $1.6 billion

Russell Finelsen, Staff Writer, Assistant Editor, Sports Editor

Expedia has bought long time rival Orbitz for $1.6 billion.

Both companies work in the travel business, and help people book many things. These include: trips, cruises, flights, hotel rooms, and car rentals.

The deal is a $12 per share. It represents a 25% premium over the close of the stock market on Wednesday. The close was $9.62.

In a statement, Expedia CEO and President Dana Khosrowshahi said: “We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team. This acquisition will allow us to deliver best-in-class experiences to an even wider set of travelers all over the world. From the flagship Orbitz.com brand, to other well-known consumer brands such as CheapTickets, ebookers and HotelClub and the business-to-business brands Orbitz Partner Network and Orbitz for Business, the Orbitz Worldwide team has built a devoted customer base.”

Expedia also owns Expedia.com, Hotwire.com, Hotels.com, Trivago, and the recently bought Travelocity. Travelocity was bought by Expedia in mid January for $280 million.

Expedia has controlled itself since 2001, when Microsoft spun it off. Expedia originally started five years earlier in 1996.