Shares of Expedia Group Inc. ( EXPE ) are trading higher on Thursday, following reports that Uber Technologies Inc. ( UBER ) is considering a potential acquisition of the travel booking company.

What To Know: According to the Financial Times, Uber ( UBER ) has engaged with advisors in recent months about exploring a potential bid for Expedia ( EXPE ) after a third party suggested the idea. The discussions, still in their early stages, have focused on Uber ( UBER ) CEO Dara Khosrowshahi, who joined the company in 2017. Before that, he served as Expedia's ( EXPE ) CEO for 12 years, expanding the company's presence to over 60 countries. Khosrowshahi remains a non-voting member of Expedia's ( EXPE ) board and would likely recuse himself if formal talks begin.

Although no formal approach has been made to Expedia ( EXPE ) and there are no current discussions, sources cautioned that Uber's ( UBER ) interest was at a very early stage and it was possible that a deal would not transpire. In August, Uber's ( UBER ) Chief Financial Officer Prashanth Mahendra-Rajah stated that the company's "top priority" for deploying capital was investing in growth, including via acquisitions.

What Else: Expedia ( EXPE ), with a market cap nearing $20 billion, would complement Uber's ( UBER ) existing growth strategy, which includes its core ride-hailing services as well as expansions into food delivery, corporate freight, and travel bookings. Uber ( UBER ), which posted its first annual profit in February 2024 since its 2019 IPO, has not made a major acquisition since 2021 but continues to invest in autonomous driving technologies.

Uber's ( UBER ) previous acquisitions include Postmates, Drizly, Careem, and Transplace, while it has also partnered with self-driving firms such as Aurora, Waymo, and BYD and invested in British startup Wayve in August 2024. Moreover, Expedia's ( EXPE ) stock rose by 6% in pre-market trading, building on an almost 50% increase over the past year. Meanwhile, Uber’s shares declined by 3%, though the company has seen 84% growth in the last 12 months.

EXPE Price Action: Expedia ( EXPE ) shares were up by 5.14% at $158.44 at the time of writing, according to Benzinga Pro.

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