Expedia buys Orbitz

Expedia is on a mad rush to buy startups and its rival companies to capture the emerging markets.Yeah that's how they do business. They don't out do the rivals but they out buy them.
Expedia agreed to buy Orbitz for around 1.6 billion equivalent to $12 per share in cash. This deal results in a premium of 29% on its share price.
Last year Expedia bought many brands to keep up with cut throat competition. They purchased Australia's Wotif Holdings for $612 million and Travelocity for $280 million.

[post_ad] Priceline is Expedia's biggest rival. The total value of the deal including assumed debt is $1.6 million. The industry was tough to run. New pressure from Kayak and Hipmunk allowed searching multiple sites and startups offering non printed discounts and customer loyalty programs.
Orbitz was formed of a joint venture between Continental Airlines,Delta Airlines,Northwest,United Airlines and American Airlines. This was done to combat the growth of Expedia
Orbitz joins the company of Hotels.com,Hotwire and trivago co owned by Expedia.

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