Expedia incurred losses of $326 million on its stake in Amex GBT
Expedia's sale of Egencia to Amex Global Business Travel may have benefited the OTA in many ways, but its equity stake has taken a battering since the closing of the deal
Expedia Group frequently talks up the benefits of its sale of corporate travel agency Egencia to American Express Global Business Travel. Benefits include: A 10-year pact to supply Amex GBT with lodging inventory, and Expedia’s equity stake in it, initially valued in 2021 at $815 million. But in 2023, Expedia Group recorded a $26 million loss on the fair value of that stake in Amex GBT, and that came on top of a $300 million loss in 2022.
Key takeaways
- Benefits include: A 10-year pact to supply Amex GBT with lodging inventory, and Expedia’s equity stake in it, initially valued in 2021 at $815 million;
- The deal enabled Expedia to shed a non-core business during a period when Expedia was trying to simplify its far-flung operations;
- And Expedia saw the deal as innovative because it enabled the company to secure a significant minority position in the leading player in business travel without having to operate its own business travel firm.
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