Buckingham Analyst Says Expedia Acquisition Of HomeAway Would Make Sense
“It's speculation, but it's speculation that would make sense,” according to McGill.
While HomeAway started listing home rental properties on Expedia in 2013, McGill noted HomeAway announced at its trade show this September that it will further its listings on Expedia. McGill said home rentals is a business that both Priceline Group Inc (NASDAQ: PCLN) and Expedia want to be in right now.
Just last month there was a rumor Priceline wanted to acquire HomeAway, McGill noted.
“The reason they're moving that direction is that they're running out of hotels to sign up, and this is the next stage of growth,” McGill said.
The Buckingham analyst pointed out that Priceline purchased OpenTable earlier this year, which is yet another avenue for growth.
In addition, McGill mentioned indications the core hotel rental business of companies like Priceline and Expedia is slowing and experiencing increased competition. Amazon.com, Inc. (NASDAQ: AMZN) has also been rumored to be entering the travel service space.
Image credit: Michael Coghlan, Flickr
Latest Ratings for EXPE
|Jan 2017||Citigroup||Initiates Coverage On||Sell|
|Jan 2017||Stifel Nicolaus||Upgrades||Hold||Buy|
|Jan 2017||Needham||Initiates Coverage On||Buy|
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