Expedia, Inc., and HomeAway, Inc., announced today that they have entered into a definitive agreement under which Expedia has agreed to acquire HomeAway, including all of its brands, for an equity value of approximately $3.9 billion in cash and Expedia common stock, representing a per share price for HomeAway shares of $38.31, based on Expedia’s closing price on November 3, 2015.
Expedia said it has “long had [its] eyes on the fast growing ~$100 billion alternative accommodations space.” Both companies are expecting to close the deal in 2016, and if they obtain regulatory approval.
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The short-term rental market is growing, and Expedia wants a piece of it. After snapping up Orbitz and Travelocity earlier this year, it has now purchase HomeAway, an online service that focuses on renting out vacation homes, further intensifying Expedia’s rivalry with Airbnb.
The travel empire has been displaying HA properties alongside hotels for a couple of years, but it will now completely own the company and all its brands.