Wednesday, April 02, 2008

Google to buy Expedia?

Yesterday, it was rumored that Google was going to buy Expedia, and shares of Expedia rose due to this rumor.

"The shares of online travel agency Expedia Inc (EXPE.O: Quote, Profile, Research) were up more than 9 percent in afternoon trade on Tuesday amid speculation that the company could be a takeover target for Google Inc"

As Google ventures into more areas in the Internet, speculation that they were going to buy up Expedia, the largest US online travel agency, wasn't completely and totally off the wall. This rumor comes a few days after Expedia and and Google Maps announced a partnership where hotels are mapped using the Google Maps page.

Does it makes sense for Google to buy Expedia? Does Expedia fit in with its portfolio of products? To me, it doesn't make sense, for a search engine company owning an online travel company. Kayak, a true travel search website, seems to align better with Google, as does Tripadvisor, who is a platform for user generated content. Both provide free services to internet users, which is very much in line with Google's philosophy of providing free services to the internet community.

At this point, there is no confirmation from either companies, and many think it's just an April fool's joke.

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