Sep. 17, 2015, 10:33 AM
- With the DOJ having given its blessing to the deal yesterday afternoon, Expedia (EXPE +2.9%) has closed its $1.6B ($12/share) acquisition of Orbitz (OWW). The latter's shares have been delisted, while the former's are rallying for the second day in a row.
- Expedia and Orbitz both jumped shortly before the close yesterday after Bloomberg reported U.S. regulators were set to approve the tie-up. The DOJ confirmed the report after the close, declaring it has "concluded that the acquisition is unlikely to harm competition and consumers."
Sep. 16, 2015, 3:59 PM
- Bloomberg reports U.S. regulators are set to approve Expedia's (EXPE +5.1%) $1.6B purchase of smaller rival Orbitz (OWW +6.4%). Shares of both companies have shot higher in response.
- The DOJ has been closely vetting the deal, which has sparked complaints among travel industry firms about the post-merger company's dominant U.S. online travel share and potential pricing/bargaining power.
- Update (4:26PM ET): The DOJ has released a statement confirming it won't challenge the Expedia/Orbitz deal. "The Antitrust Division investigated the concerns that have been expressed about this transaction. We took those concerns seriously and factored into our analysis all of the information provided by third parties. At the end of this process, however, we concluded that the acquisition is unlikely to harm competition and consumers."
Jul. 30, 2015, 2:44 PM
- The NY Post reports the DOJ is expected to sign off on Expedia's (EXPE +0.8%) $1.6B acquisition of Orbitz (NYSE:OWW). Official approval could reportedly arrive by the end of August.
- The DOJ has been closely vetting the deal on account of Expedia/Orbitz's combined U.S. online travel share. Even after today's gain, Orbitz trades 5.5% below Expedia's $12/share buyout price.
- Expedia reports after the close. Orbitz reports on Aug. 6.
Feb. 12, 2015, 8:33 AM| Feb. 12, 2015, 8:33 AM | 2 Comments
Jan. 20, 2015, 3:57 PM
- Sources tell Bloomberg Orbitz (OWW +9.1%) has "drawn interest from private-equity funds and other Internet companies." The company is reportedly working with a financial adviser (unnamed) as it reaches out to prospective buyers.
- Benchmark's Daniel Kurnos speculates "someone from the outside looking for a a foothold in the industry" would be a logical buyer for Orbitz, whose lack of scale relative to Priceline/Expedia has put it at a disadvantage. He views Google as one such potential suitor.
- Orbitz was owned by P-E firm Blackstone (through its Travelport unit) before being taken public in 2007. Shares have pared the initial gains they saw due to Bloomberg's report, but remain around $10.
Jan. 20, 2015, 1:47 PM
Feb. 15, 2013, 4:29 PM
Orbitz (OWW) +1.5% AH after stating it's "exploring strategic alternatives" for its Away Network division, which includes Away.com, Trip.com, GORP.com, and AdventureFinder.com. The company adds a sale won't change its 2013 earnings outlook. Orbitz, whose shares have been depressed for some time as the company loses ground to bigger rivals Priceline and Expedia, is up 25% since it posted a Q4 revenue beat on Thursday morning.| Feb. 15, 2013, 4:29 PM
Aug. 13, 2012, 12:14 PM
Google (GOOG) is buying travel guide publisher Frommer's from John Wiley & Sons for an undisclosed sum. Google hasn't decided whether to continue publishing Frommer's titles in print. Together with its purchases of ITA Software and Zagat, the deal underscores Google's ambitions to be a major player in online travel content/services, with the help of Google Maps and other local offerings. Frommer's and Zagat also lend themselves well to Google's efforts to improve mobile monetization via local ads. (TRIP/OWW impact)| Aug. 13, 2012, 12:14 PM | 2 Comments