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Expedia Takes Bite Out of Asia-Pacific Region With Wotif.com Purchase

TheStreet.com Videos 1:09 mins

Expedia is anchoring new operations in the Asia-Pacific after agreeing to purchase Australian online travel agency Wotif.com. The U.S. travel company proposed an offer of A$703 million, or around $660 million USD, representing a 14% premium to Wotif's most recent close. Following the announcement, shares spiked 24.6%. A buyout would be in Wotifâ¿¿s best interests as the company suffers bleeding profits on increased costs. In its first half ended December, net income dropped 18% even as revenue climbed 3.5%. The proposed transaction has yet to pass shareholder and regulatory approval. If approved, the deal is expected to close in October.

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