Expedia's majority owner, New York-based USA Interactive, today announced an agreement to acquire the remainder of the leading online travel agency in a stock-for-stock transaction valued at $3.3 billion based on yesterday's share prices.
This second attempt by USA to buy the Bellevue, Wash., company was approved by Expedia's board, the pair announced. Barry Diller, chairman and CEO of USA Interactive, echoed his earlier statements in asserting an encouraging commitment to the travel industry despite the risky business environment: "If there is life, then there is travel." The announcement comes just weeks before CEO Richard Barton's departure from Expedia
(BTNonline, Feb. 6).
USA already owns about 54 percent of Expedia stock and controls nearly 95 percent of the voting power. USA expects the transaction to be completed in the summer of 2003. USA also owns Hotels.com and Ticketmaster.