Articles tagged “mergers and acquisitions”

Despegar is playing the hand it's been dealt during the depths of the coronavirus crisis, and that means it will cut costs, ensure liquidity, and be on the prowl for opportunistic acquisitions to take market share.

Let's hope the deal talks will go faster than Wi-Fi aboard a plane.

Greg O'Hara and Noam Gottesman will be shopping for a winner, but unlike early stage investors, they can hunt for a travel company with an extensive track record. In the midst of a global pandemic, this is not a done deal, but you can bet a deal will get done.

While other online travel companies, such as Expedia Group, pursued robust media businesses over the years, Tripadvisor neglected it. In turn, it's now trying to make good on an unrealized opportunity. Shedding non-core assets could help with the focus.

A silver lining in the coronavirus fiasco, for companies that survive it, is that the crisis gives many the chance to reset and take stock of their operations. Neglecting to do that can be an opportunity that may never resurface.

Vista, the investor behind this merger of airline tech vendors Accelya and Farelogix, is no private equity tourist. The firm has committed tens of billions to technology businesses, and it shows signs of having the wherewithal to grow Accelya into a long-term player in airline tech services.

Don't count your deals before they've hatched. Coronavirus has killed valuations of many companies, and deals along with them. On the other hand, some companies, such as Grubhub, are in the right place at the right time.

Despegar, Latin America's largest online travel company, will pay much, much less than its original $136 million proposed price to buy Mexican travel agency Best Day. Expect similar tough haggling over deal terms by travel companies across the globe.

Expedia Group is trying to simplify its far-flung operations, and its multifamily, short-term rental business wasn't a core endeavor. That's especially true when you consider how Covid-19 has decimated demand for such properties in urban areas.

Smaller online travel agencies try to make money by grabbing nickels and eurocent coins ahead of the steamrollers of global advertising behemoths. The underreported story of why China's largest travel company acquired a tiny Dutch travel group highlights the phenomenon.