NEW YORK -- InterActiveCorp (IAC), the company that owns Expedia and Hotels.com, will add to
its travel empire by purchasing Hotwire.com for $665 million in cash, plus $20
million in options and warrants.
The transaction is expected to close during fourth quarter
2003.
Currently, six U.S. airlines (American, America West,
Continental, Northwest, United and U.S. Airways) and Texas Pacific
Group own Hotwire, which sells discounted inventory opaquely --
which means Hotwire doesn't reveal the brand or flight schedule
until after the customer makes a purchase.
Following the acquisition, Hotwire will remain a separate subsidiary and
brand within IAC.
IAC also formed a single travel division, IAC Travel, that
consists of the following businesses: Expedia.com, Expedia
Corporate Travel, Expedia's international brands and WWTE
(Expedia's private-label offering); Classic Custom Vacations;
Newtrade Technologies; Hotels.com and affiliated brands; TV Travel Shop; and
Interval International. Once acquired, Hotwire also will
become an independent brand within IAC Travel.
To contact reporter Jerry Limone, send e-mail to [email protected].