Expedia Soars On Unfounded Rumor

Expedia (EXPE) shares are higher for the second straight day on rumors that Google (GOOG) might want to buy the online travel services company.

Reuters reported yesterday that Susquehana Financial Group told clients that “Call buyers surfaced in Expedia…as unsubstantiated rumors surfaced stating that Google…could make a bid for the company.”

And why would they want to do that, pray tell? I don’t believe that one at all. As the Motley Fool notes, such a deal would create conflicts with other travel firms that pay Google for ads. And why would Google want to be in the business of selling airline tickets and hotel rooms, anyway? What does that have to do with organizing all the world’s information?

Expedia today is up 89 cents, or 3.7%, to $24.98. Yesterday, the stock rose $2.20.

Comments

[Lisa:]

Totally agree with your take on Google. There's no sense to them acquiring Expedia.

2008 Apr 02 05:06 PM

[Iceberg:]

What did Google have to do with watching videos uploaded by amateurs? Nothing, yet they acquired YouTube.

2008 Apr 03 12:53 AM