USA Interactive has acquired the remaining shares of Expedia it does not already own in a stock-for-stock transaction, valued at $3.3 billion.
Under the agreement, the online travel site’s shareholders would receive 1.94 shares of USA common stock for each share of Expeida stock that they own. USA would issue to Expedia public shareholders approximately 92.5 million basic shares and 124.9 million shares.
Commenting on the timing of the deal as war looms, Barry Diller, chairman and CEO of USA Interactive, New York, said in a statement, “Travel may be affected by this or that event, for a day or a month or whatever, but if there is life then there is travel–we bet on the latter.”
USA owns currently owns approximately 54% of the outstanding Expedia stock and controls 94.9% of the combined voting power of the outstanding Expedia shares. USA has agreed to vote all of its Expedia shares in favor of the merger.
Bellevue, WA-based Expedia is expected to report revenue of $194 million for the first quarter ending March 31. Expedia’s operating budget is expected to be $186 million.
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