Bloomberg has been reporting today that NYSE listed Orbitz is exploring a sale of its business and has reached to potential buyers.
The market value of Orbitz is roughly one tenth of Expedia and one fiftieth of the Priceline Group.
Here’s an excerpt from the Bloomberg article that you can access here:
The company is working with a financial adviser as it reaches out to potential buyers, said the people, asking not to be identified discussing private information. Chicago-based Orbitz has drawn interest from private equity funds and other Internet companies, the people said, without identifying potential buyers.
Orbitz has long been the smallest player in online travel without the benefit of economies of scale, according to Daniel Kurnos, an analyst at Benchmark Co. The company may be seeking to gain that scale in an increasingly competitive space, he said. U.S. airlines are flying at record capacity in the U.S. as fuel — their largest expense — is at the lowest level in six years.
“Someone from the outside looking for a a foothold in the industry” would be a logical suitor for Orbitz, Kurnos said, including Google Inc.
If you have been planning to enter the online travel agent field, this is your chance to purchase Orbitz and affiliated companies for bit more than a billion dollars.
Let’s hope that Orbitz doesn’t end up being bought up by Expedia that already has numerous brands under its umbrella, as it is always good to have some competition.
I didn’t use Orbitz for quite a few years, but have started to book few trips here and there through the company due to the promotions they have run for Orbitz Rewards members (bonus Orbucks!).