SAN FRANCISCO, Nov. 5 (UPI) — Expedia announced its purchase of vacation rental site HomeAway for $3.9 billion.
Expedia CEO Dara Khosrowshai told USA Today the company has had a relationship with HomeAway for two years and that folding the company into the Expedia brand “is a logical next step.”
Following news of the purchase Wednesday, HomeAway’s stock rose 22 percent as Expedia stocks fell 1.63 percent to $134.17.
HomeAway says it manages a million paid listings across 190 countries. The company also owns additional brands in the United States and abroad, including VRBO.com, VacationRental.com.
The purchase was funded by a combination of cash and stock.
The news of the merger follows lodging website Airbnb’s victory in San Francisco, where voters rejected a measure that would handicap the service by placing further restrictions on people seeking out rooms or properties to rent. Those opposed to the restrictions said a service like Airbnb allows homeowners to offset high living costs by offering rented spaces.
HomeAway offers deals for travelers looking for rentals of one week or longer in duration, meaning Expedia will immediately be able to provide options beyond hotel room rentals to its users.
HomeAway CEO Brian Sharples echoed that zealousness when he said his company is “eager to benefit from Expedia’s distribution, technology and expertise, which will allow us to provide an even better product and service experience for our owners, property managers and travelers.”
Expedia, a top digital travel provider, also recently purchased Orbitz Worldwide for about $1.6 billion. In January, it also paid $280 million for Travelocity.
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