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Online travel businesses merge

On Behalf of | Feb 13, 2015 | Mergers and Acquisitions

As the internet has grown in popularity, people rely more and more upon it to accomplish tasks in their lives. This includes bypassing travel agents to plan trips using online websites. Two of the most used sites over the course of the last decade are Expedia and Orbitz. Recently these rivals sought to merge. News sources indicate that the two businesses recently reached an agreement on that deal. The deal is said to be worth $1.34 billion.

Not all mergers involve such a large amount of money. In fact while making a lot of money on such a deal is certainly a motivator for some companies who pursue this option, there is often more to it. Every business that enters into a merger with another one has its own reasons for doing so. In this particular case, competition from other online sites likely had an impact on the decision as the two companies were characterized as being squeezed by the middle of the market. The merger is expected to give Expedia more than 6 percent market share of the travel retail area.

Whatever the reason for the financial value of a merger it is important to make sure it is completed properly. Both companies need to take steps to make sure their best interests are being looked out for. The best way to do this is work with a business lawyer. With an understanding of just what a company’s interests are, that individual should be able to help make sure the transaction runs smoothly and provides the desired result to a client.