Travel
booking website says it is buying short-term rental marketplace
HomeAway for $3.9 billion (nearly Rs. 25,607 crores) to boost its
presence in the vacation rental market.
The
Bellevue, Washington, company said Wednesday it is paying roughly
$38.31 in cash and stock for each share of HomeAway, of Austin,
Texas. Both companies' boards have approved the deal, which they
expect to close next year.
HomeAway
says it has more than 1 million paid listings of vacation rental
homes in 190 countries. Along with its namesake web
site Inc.
portfolio also includes Hotels.com, Orbitz and Travelocity. In
after-hours trading, HomeAway shares added 22 percent to $39.05.
website
shares rose 2.8 percent to $137.95.
US
prevent
companies
offical they
will not block the merger of online travel booking giant Expedia and
Orbitz, adding it won't hurt competition in the sector.
Expedia
announced plans in February to buy Orbitz for about $1.6 billion
(nearly Rs. 10,578 crores). Last month, a consumer group and hotel
association objected to the merger, saying the deal would lead to a
powerful duopoly with 75 percent of the online travel agent market.
The
US fairness Department disagreed "Orbitz is only a small source
of bookings" for most operators, said Assistant Attorney General
Bill Baer, who heads the department's antitrust division.
He
added that "travel service providers have alternative ways to
attract customers and obtain bookings, including website largest
online travel agent rival, Priceline."
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