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Expedia Case Study Summary

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This acquisition allows Expedia and HomeAway to deliver best-in-class experiences to an even wider set of travelers all over the world. Management team pitched well by giving respect for the HomeAway team and the business they have built. With their expertise in powering global transactional platforms and industry-leading technology capabilities, Expedia look forward to partnering with them to accelerate their shift from a classified marketplace to an online, transactional model to create even better experiences for HomeAway’s global traveler audience and the owners and managers of its 1.2 million properties around the world. Also they added about that they have long had their eyes on the fast growing ~$100 billion alternative accommodations …show more content…

There will be synergy as Expedia will be able to boost traffic to its lodging listings. While options like HomeAway and AirBnB are fairly well-known, there is still a large segment of the travel population that either forgets about those options, or may not seriously consider them.The stock is trading at a $3.5 billion valuation. What we see is that Expedia panicked. It wanted to own a piece of the VRBO space because it will need to compete with AirBnB. So it grabbed HomeAway while it had the chance, but has vastly overpaid using shareholder …show more content…

HomeAway Inc. shares soared 25 percent after Expedia Inc. agreed to acquire the vacation-rental company for $3.9 billion, and investors speculated the bid may prompt a counteroffer from another rival such as Priceline Group Inc. Expedia will pay $38.31 a share for HomeAway, the companies said in a statement after the close of trading. That’s 20 percent higher than Austin, Texas-based HomeAway’s price before the deal was announced. The stock rose to $40.15 in New York, and Expedia shares jumped 2.3 percent to

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