Expedia has been the subject of a bid discussion from Uber.

Expedia has been the subject of a bid discussion from Uber.
Expedia has been the subject of a bid discussion from Uber.
  • Expedia is being considered for acquisition by Uber, according to CNBC's confirmation.
  • It's uncertain if a deal will be reached as the talks are still in their initial stages.
  • Dara Khosrowshahi was previously the CEO of Expedia from 2005 to 2017 before becoming the CEO of Uber.
Acquiring Expedia would be a 'major strategic home run' for Uber, says Wedbush's Dan Ives

CNBC confirmed that a bid for the $20 billion travel booking company was discussed, which would push the ride-share company into new markets beyond car travel and food delivery.

According to a source close to the discussions, who requested anonymity due to the confidential nature of the talks, the discussions were in their initial stages. It is uncertain if an acquisition will occur. Uber CEO Dara Khosrowshahi has prior experience with Expedia, having served as its CEO from 2005 to 2017. Khosrowshahi remains a non-executive member of Expedia's board.

Uber's interest in Expedia was first reported by the Financial Times.

Shares of Expedia were up more than 6% Thursday morning.

Through its website, Expedia allows users to book flights, lodging, cars, and activities, and it also owns other travel sites such as Hotels.com, Vrbo, and Orbitz. In its second-quarter results in August, Expedia reported a total gross booking value of $28.8 billion.

According to Dan Ives, managing partner at Wedbush Securities, the acquisition of Expedia by Uber would be a "major strategic home run." This suggests that Uber is going on offense and looking for new monetization opportunities, and it could be a step toward a "super app."

"Ives stated that they possess a significant amount of mojo and are continuously gaining market share. He believes they will be actively seeking mergers and acquisitions."

Uber did not immediately respond to CNBC's request for comment.

by Deirdre Bosa

Technology