Prior to the U.S. stock market opening, shares of Expedia (EXPE, Financial) rose nearly 7% following reports that Uber (UBER) is considering acquiring the company to diversify its business operations. According to insiders, after a third party expressed interest in acquiring the travel booking company Expedia, Uber has discussed making a bid with its advisors in recent months.
The interest from Uber is described as being in a very early stage, and any agreement may not materialize. The ride-hailing giant has not formally approached Expedia, and no official negotiations are currently taking place.
Discussions at Uber are reportedly centered around the role of Uber's CEO Dara Khosrowshahi, who served as Expedia's CEO from 2005 to 2017 and remains a non-executive director. Given his connection to Expedia, any engagement with the company would likely be amicable, and he would need to abstain from transaction discussions.
Both Uber, Expedia, and Expedia Chairman Barry Diller have declined to comment on the matter.
