Vacation home rental website with more than one million house listings, Homeaway, has been acquired by the parent company of many rental websites ‘Expedia’, in a whopping amount of $3.9 Billion. A lot of speculations were mumbled before, regarding the acquisition of Homeaway. It is believed that Google was also in the run.
The announcement came on Wednesday unanimously from Homeaway’s board of directors and both the companies have agreed to it, the only thing that remains is regulatory approval which will most probably come in the first quarter of 2016.
“We have long had our eyes on the fast-growing (approximately) $100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years,” Expedia CEO, Dara Khosrowshahi said.
Buying shares at a price of $38.21, Expedia has made one of the largest ever acquisitions of a travel site. The competition with AirBnB is getting intense as AirBnB reaches a valuable evaluation of $25.5 billion.
Expedia has been pretty active in buying vacation rentals, last year it acquired Wotif, Orbitz, Travelocity and worldwide. Travelocity was bought for $280 Million, while Orbitz was bought for a massive $1.6 billion.
In a press conference Homeaway CEO, Brian Sharples quoted, “I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come.”
With more than 1.5 million listings of vacation rental homes, hotels and apartments. The company is trying to compete with AirBnB, they actually bought its rival ‘HomeAway’. AirBnB is not the only one they are competing against but also Booking.com is giving them a sweat.
The shares of Expedia went to a new high by 2.5% after the trading and announcement. Austin based travel rental company, ‘Homeaway’ will seek a new target and like Brian Sharples said, “I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come.”