Expedia (EXPE) shares rose, while those of Uber Technologies (UBER) moved lower Thursday morning following a report from the Financial Times that the ridesharing giant has explored acquiring the travel booking company.
A third party brought the idea to Uber, which has not yet made any official approach or offer to Expedia, the FT reported, citing "three people familiar with the process."
Uber and Expedia did not immediately respond to Investopedia's requests for comment. Expedia shares rose 5% in early trading, while Uber's stock was down 1.5%.
Acquiring Expedia—which operates its namesake platform along with brands like Hotels.com and Vrbo—would help expand Uber's efforts into travel booking as it aims to transform itself into a "super app," the FT reported.
In Uber's second-quarter earnings call in August, Chief Financial Officer (CFO) Prashanth Mahendra-Rajah said investing in growth remained Uber's "top priority," including "through acquisition opportunities that are aligned with our strategy." The company has a history of acquisitions, including buying up delivery rivals like Postmates and others.
Uber Chief Executive Officer (CEO) Dara Khosrowshahi previously served as Expedia's CEO from 2005 until his 2017 departure to take the top job at Uber, which the FT reported should help ensure any acquisition talks would start on a friendly note.
Khosrowshahi currently is a non-executive director on Expedia's board and "would recuse himself from deal discussions," the report said.
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