Expedia’s (NASDAQ:EXPE) shares rose on another round of Google (NASDAQ:GOOG) acquisition rumors. Acquiring a large and complex global travel agency with an extensive customer care organization and supplier account management group would be a significant departure from Google’s 50+ previous technology oriented acquisitions. The travel industry represents one of Google’s largest sources of advertising revenue – an acquisition of Expedia could be highly disruptive as OTAs and suppliers would reevaluate advertising spend supporting their largest competitor.
Google acquiring Expedia makes about as much sense as this logo...
A similar rumor surfaced at exactly this time last year suggesting Expedia would be scooped up by Google to assist its penetration of the travel vertical. This appears to be the identical rumor, with the only difference being Expedia’s lower market cap. continue reading →
