Expedia CEO Likes Airbnb’s $30 Billion Valuation for Selfish Reasons
Photo Credit: Expedia believes that it can turn HomeAway into a unicorn in terms of global scale. Pictured is Expedia CEO Dara Khosrowshahi speaking at Skift Global Forum 2016. Skift
Skift Take
Critics of Expedia Inc.'s 2014-2015 acquisition spree appear to have had a valid point: These sorts of mergers and integrations can be very distracting and complex. Expedia has felt the pain now in the second and third quarters and could be in for some more until it get can get things back on course. Expedia's competitors will take advantage.
With privately held Airbnb attracting a $30 billion valuation, compared with Expedia Inc.'s smaller $18.6 billion market cap, you'd think that would anger Expedia CEO Dara Khosrowshahi.
And perhaps, deep down, it does.
Asked at the Skift Global Forum last month whether Airbnb was going to "eat Expedia's lunch" in the alternative lodging sector, Khosrowshahi quipped right back, "Not yet. I'm well-fed."
But during Expedia's third quarter earnings call Thursday, Khosrowshahi saw a lot of positives for Expedia in Airbnb's $30 billion valuation. He said there are currently only two big players in alternative lodging -- presumably he meant Airbnb and Expedia's HomeAway -- while Booking.com is up-and-coming in the sector.
Khosrowshahi said it would be "a very big opportunity" if Expedia could turn HomeAway into one of those handful of big-scale players in alternative lodging -- maybe somethi
