News about Uber's potential acquisition of Expedia could impact the travel and transportation industry.

Potential Uber and Expedia Deal

According to the Financial Times, reported on October 17, 2024, Uber Technologies Inc. is exploring a potential acquisition of Expedia Group Inc. This deal might be Uber's largest, with its market capitalization at $173 billion compared to Expedia's $20 billion. Uber CEO Dara Khosrowshahi, who previously led Expedia, is expected to recuse himself from discussions.

Stock Market Reaction to the News

Following the acquisition rumors, both companies saw significant pre-market stock movements. Uber's stock fell by 2.63% to $79.75, while Expedia's stock rose by 6.60% to $160.80.

Financial Status of Uber and Expedia

Uber became profitable for the first time in 2023, showing strong growth with a revenue of $40.06 billion and a net income of $2.01 billion. Over the past year, Uber's stock has increased by 88.36%, whereas Expedia's stock has shown a 52.12% rise, with a revenue of $13.26 billion and a net income of $808 million.

The potential acquisition of Expedia by Uber could lead to significant market changes, marking a key step in Uber's strategy to diversify its services.