Arab Today, arab today expedia buys rival travel operator orbitz for 16bn
Last Updated : GMT 16:58:34
Arab Today, arab today
Arab Today, arab today

Expedia buys rival travel operator Orbitz for $1.6bn

Arab Today, arab today

Arab Today, arab today Expedia buys rival travel operator Orbitz for $1.6bn

Expedia
New York - AFP

US online travel operator Expedia announced plans Thursday to buy rival Orbitz Worldwide for about $1.6 billion, in a move that further consolidates the sector.
Expedia will pay $12 in cash for each Orbitz share, in the takeover approved by the companies' boards of directors.
"We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team," said Dara Khosrowshahi, Expedia's president and chief executive.
The deal which includes the Orbitz online booking site as well as brands such as CheapTickets, ebookers and HotelClub is subject to shareholder and regulatory approval.
The price represents a 29 percent premium over the most recent share price of Orbitz, the companies said in a statement.
Barney Harford, the CEO at Orbitz, said the tie-up would "further enhance the offerings we provide to our customers and partners."
The announcement comes less than a month after Expedia announced the purchase of rival Travelocity in a $280 million deal.
The dealmaking takes place amid increased competition in the travel sector from websites such as Priceline-owned Kayak and others which scan the Internet for the best deals.
Expedia operates other travel sites including Hotels.com and Carrentals.com. It also holds a stake in the Chinese travel operator eLong.
According to the research firm Morningstar, Expedia and Priceline each have around 30 percent of the global online travel agency booking market, followed by Orbitz's eight percent share, with several smaller players holding the remaining share.
Expedia in 2014 saw the number of bookings rise 28 percent to 50 million, and reported a profit of $398 million.
- Cost synergies -
RBC Capital Markets analyst Mark Mahaney said in a note to clients that the deal was "not surprising given Expedia's recent appetite for acquisitions and press reports of Orbitz putting itself on the market."
He said the $75 million in synergies estimated by the companies was "achievable" as a result of cost savings from the consolidation, and maintained that "we don't believe regulatory hurdles will be significant."
Mahaney said Orbitz "has been one of the weakest players in online travel" while Expedia "has demonstrated an ability to work through industry challenges, while laying the foundation for strong growth."
Speaking at an investor conference earlier this week, Expedia chief financial officer Mark Okerstrom said the company sees opportunities for growth in "an absolutely massive" global travel industry worth some $1.3 trillion.
"Everything we're doing... is all along the same vein of us just expanding our presence as a distributor of travel -- a marketplace, a platform for travelers to meet up with travel suppliers," he said.
Orbitz was launched in 2001 by major US airlines as a way to counter the presence of online booking services such as Expedia and Travelocity, but was later spun off as an independent company.
Orbitz at the same time published its financial results, showing profits rose 36 percent in the fourth quarter to $7.3 million, while revenues increased 12 percent to $221 million.
For the full year, profit fell a sharp 90 percent to $17.3 million while revenues grew 10 percent to $932 million.

 

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today expedia buys rival travel operator orbitz for 16bn Arab Today, arab today expedia buys rival travel operator orbitz for 16bn

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday