Remember last April Fools Day when shares (and options) of EXPE shot up on rumors that Google was interested in buying Expedia? Well, yesterday was St. Patricks Day and yet again, the rumor mill was active that Google was going to take out Expedia.
Come on folks, this is just silliness.
First of all, while EXPE is clearly firing on all cylinders right now, its hardly the high-growth, new business model type of business that Google typically buys. Expedia is a great company for sure, with a great brand and great leadership but it is a big travel agency at heart - hardly very Google-esq. Of course Google would like to be deeper into travel but this isn't how (if they even decide to) they will do it. Just look at how things worked out for Yahoo! and Farechase as an example - not that we would hold up Yahoo! as an example of how to do much of anything right.
But more importantly, travel is one of Google's largest ad sales verticals. Do you really think they would potentially jeopardize the huge revenue stream from Expedia's current competitors (e.g. Priceline, Travelocity) and the suppliers themselves to own Expedia? Not a chance.
True, Google's Head of Travel, Rob Torres is an Expedia veteran and even still lives in the Seattle area, but we doubt he is looking to return to his old commute to Bellevue.
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