Expedia is expanding its presence in Europe today with an announcement that it has acquired 61.6 percent of Trivago, a 7-year-old Düsseldorf, Germany-based hotel search company. Bellevue-based Expedia is paying $632 million for the stake, with the deal expected to close in the first half of next year.
“We are very excited to join the Expedia, Inc. portfolio and eager to learn from their experience, having built-up some of the world’s most trusted travel brands,” said Rolf Schrömgens, Trivago co-founder and Managing Director. “Our passion and focus will remain on independently evolving our comprehensive and individualized hotel search. We will stay committed to our mission: To empower consumers to find their ideal hotel at the lowest possible rate.”
Expedia has taken a similar approach to expansion in China, taking an equity ownership position in eLong in 2004. It has been expanding that position in recent years, including paying $72.4 million to acquire Renren’s stake last year.
Shares of Expedia are down two percent today, trading at about $59 per share. So far this year, shares of the company are up 105 percent.