Acquiring Expedia would be a 'major strategic home run' for Uber, says Wedbush's Dan Ives

Uber mentioned a bid for the $20 billion journey reserving firm Expedia, CNBC confirmed, in a deal that might push the ride-share firm into new markets past automotive journey and meals supply.

The talks have been in early phases, in response to an individual accustomed to the discussions who requested to not be named for the reason that talks are confidential. It stays unclear if an acquisition will happen. Expedia is acquainted territory for Uber CEO Dara Khosrowshahi, who beforehand served as CEO of the journey group from 2005 to 2017. Khosrowshahi remains to be a non-executive member of Expedia’s board.

Uber’s curiosity in Expedia was first reported by the Financial Times.

Shares of Expedia have been up greater than 6% Thursday morning.

Expedia customers can e book flights, lodging, vehicles and actions by the corporate’s web site, and it owns extra journey websites like Inns.com, Vrbo and Orbitz. Expedia reported $28.8 billion complete gross bookings in its second-quarter results in August.

An acquisition of Expedia could be a “‘main strategic residence run” for Uber, Dan Ives, Wedbush Securities managing accomplice, advised CNBC’s “Squawk Field” on Thursday. He mentioned this implies Uber is occurring offense and in search of new monitization alternatives, and it could possibly be a step towards a “tremendous app.”

“They’ve a large mojo, they usually’re simply gaining increasingly more share,” Ives mentioned. “I feel they are going to be on the hunt for M&A.”

Uber didn’t instantly reply to CNBC’s request for remark.



Source link