Airbnb has just won (investing a lot of money in advertising) the battle of San Francisco against the proposed restrictive rules for the rent of the houses, but have to worry about a possible aggressive competitor: Expedia. The thirst for acquisitions by the company listed on the Nasdaq technology index does not seem to end: after acquiring the rival Orbitz Worldwide for $ 1.6 billion, on Wednesday, with the markets already closed, the group announced that it had reached an agreement to buy HomeAway.
The operation to detect the site of announcements of houses vacation rentals worth $ 3.9 billion or $ 37.86 per share on Wednesday price, a premium of 18% over the last closing price of the HomeAway title. Expedia is preparing to challenge Airbnb, the site that offers rooms or houses for rent. Compared to Orbitz, HomeAway requires a higher price not only for its size but also for the type of industry in which it operates, as a high-growth potential. The CEO of Expedia called it a market of 100 billion dollars.
The deal is expected to be closed in the first quarter of 2016 subject to regulatory approval. Expedia expects that this acquisition will hurt its earnings per share next year but boost results in the long period.
In addition to Orbitz, Expedia also bought last year Travelocity and the Australian Eotif. The title HomeAway closed on Wednesday in the Nasdaq index rising 0.95% to a price of $ 32.04. In the after-market, when the news came, he gained more than 21% and is now nearly 37 dollars. YTD rose by almost 8%. Also Expedia on Wednesday had completed their exchanges on the index with an increase of 1.63% to $ 134.17. In after-market it added nearly 3% and it closed the week at a price of $ 133.32.
Vincenzo Carandente
The operation to detect the site of announcements of houses vacation rentals worth $ 3.9 billion or $ 37.86 per share on Wednesday price, a premium of 18% over the last closing price of the HomeAway title. Expedia is preparing to challenge Airbnb, the site that offers rooms or houses for rent. Compared to Orbitz, HomeAway requires a higher price not only for its size but also for the type of industry in which it operates, as a high-growth potential. The CEO of Expedia called it a market of 100 billion dollars.
The deal is expected to be closed in the first quarter of 2016 subject to regulatory approval. Expedia expects that this acquisition will hurt its earnings per share next year but boost results in the long period.
In addition to Orbitz, Expedia also bought last year Travelocity and the Australian Eotif. The title HomeAway closed on Wednesday in the Nasdaq index rising 0.95% to a price of $ 32.04. In the after-market, when the news came, he gained more than 21% and is now nearly 37 dollars. YTD rose by almost 8%. Also Expedia on Wednesday had completed their exchanges on the index with an increase of 1.63% to $ 134.17. In after-market it added nearly 3% and it closed the week at a price of $ 133.32.
Vincenzo Carandente