Expedia is one of the world’s leading online travel agencies, offering a wide range of travel services, including flights, hotels, car rentals, and vacation packages. With its user-friendly interface and competitive pricing, Expedia has become a go-to platform for travelers worldwide. But have you ever wondered who owns Expedia? In this article, we will delve into the ownership structure of Expedia, exploring its history, key stakeholders, and the impact of its ownership on the company’s operations.
A Brief History of Expedia
Expedia was founded in 1996 by Microsoft as a division of the software giant. Initially, the company was called Microsoft Expedia Travel Services, and its primary goal was to provide online travel booking services to Microsoft’s customers. In 1999, Expedia was spun off from Microsoft and became a publicly-traded company, listed on the NASDAQ stock exchange under the ticker symbol EXPE.
Early Years and Expansion
In its early years, Expedia focused on expanding its product offerings and improving its technology platform. The company acquired several travel-related businesses, including TripAdvisor, a travel review website, and Hotels.com, a hotel booking platform. These acquisitions helped Expedia diversify its revenue streams and increase its market share in the online travel industry.
Ownership Structure of Expedia
Expedia is a publicly-traded company, listed on the NASDAQ stock exchange under the ticker symbol EXPE. As a result, the company’s ownership structure is dispersed among various stakeholders, including institutional investors, individual investors, and company insiders.
Institutional Investors
Institutional investors, such as pension funds, mutual funds, and hedge funds, are the largest shareholders of Expedia. These investors typically hold a significant portion of the company’s outstanding shares and can exert influence over the company’s operations and strategy.
| Institutional Investor | Number of Shares | Percentage of Outstanding Shares |
|---|---|---|
| The Vanguard Group, Inc. | 14,111,111 | 11.1% |
| BlackRock, Inc. | 10,333,333 | 8.1% |
| State Street Corporation | 5,555,556 | 4.4% |
Individual Investors
Individual investors, including company insiders and external investors, also hold a significant portion of Expedia’s outstanding shares. These investors can include company executives, directors, and employees, as well as external investors who have purchased shares on the open market.
Company Insiders
Company insiders, such as executives and directors, hold a small but significant portion of Expedia’s outstanding shares. These insiders can include:
- Peter Kern, Vice Chairman and Chief Executive Officer
- Julie Whalen, Chief Financial Officer
- Robert Dzielak, Chief Legal Officer
Impact of Ownership on Expedia’s Operations
The ownership structure of Expedia can have a significant impact on the company’s operations and strategy. Institutional investors, for example, may exert pressure on the company to prioritize short-term profits over long-term growth. This can lead to decisions that benefit shareholders in the short term but may not be in the best interests of the company or its customers.
Corporate Governance
Expedia’s corporate governance structure is designed to ensure that the company is managed in a responsible and transparent manner. The company’s board of directors, which includes representatives from institutional investors and individual investors, is responsible for overseeing the company’s operations and strategy.
Board of Directors
Expedia’s board of directors includes:
- Peter Kern, Vice Chairman and Chief Executive Officer
- Barry Diller, Chairman of the Board
- Victor Kaufman, Vice Chairman of the Board
Conclusion
In conclusion, Expedia is a publicly-traded company with a dispersed ownership structure. Institutional investors, individual investors, and company insiders all hold significant portions of the company’s outstanding shares. The ownership structure of Expedia can have a significant impact on the company’s operations and strategy, and the company’s corporate governance structure is designed to ensure that the company is managed in a responsible and transparent manner. As Expedia continues to evolve and grow, its ownership structure will likely play an important role in shaping the company’s future.
Who are the major shareholders of Expedia?
Expedia’s major shareholders include a mix of institutional investors, individual investors, and corporate entities. As of the latest available data, the largest shareholders of Expedia include The Vanguard Group, Inc., BlackRock, Inc., and State Street Corporation. These institutional investors hold significant stakes in the company, with Vanguard owning around 10% of Expedia’s outstanding shares, followed by BlackRock with around 6%, and State Street with around 4%. Other notable shareholders include individual investors such as Dara Khosrowshahi, Expedia’s former CEO, and Peter Kern, the company’s current CEO.
It’s worth noting that the ownership structure of Expedia can change over time due to various market and economic factors. Shareholders may buy or sell their stakes in the company, and new investors may emerge. Additionally, Expedia’s ownership structure may be influenced by factors such as mergers and acquisitions, stock buybacks, and changes in the company’s business strategy.
What is the role of Barry Diller in Expedia’s ownership structure?
Barry Diller is a significant shareholder of Expedia and has played a crucial role in the company’s history. Diller is the chairman of Expedia Group’s board of directors and has been a major shareholder of the company since its inception. He is also the chairman and senior executive of IAC/InterActiveCorp, a media and internet conglomerate that was Expedia’s parent company until 2015. Diller’s stake in Expedia is significant, and he has been instrumental in shaping the company’s strategy and direction over the years.
As a major shareholder and chairman of the board, Diller has significant influence over Expedia’s operations and decision-making processes. He has been a key player in the company’s major transactions, including its spin-off from IAC in 2015 and its subsequent acquisitions and partnerships. Diller’s leadership and vision have been instrumental in Expedia’s growth and success, and his continued involvement with the company is seen as a positive factor by investors and analysts.
How has Expedia’s ownership structure evolved over time?
Expedia’s ownership structure has undergone significant changes over the years. The company was founded in 1996 as a division of Microsoft and was later spun off as a separate entity in 1999. In 2005, Expedia was acquired by IAC/InterActiveCorp, a media and internet conglomerate led by Barry Diller. During its time as an IAC subsidiary, Expedia underwent significant expansion and transformation, including the acquisition of several travel companies and the launch of new brands and services.
In 2015, Expedia was spun off from IAC as a separate publicly traded company, marking a significant milestone in its evolution. Since then, the company has continued to grow and expand through acquisitions and partnerships, including its purchase of Orbitz Worldwide in 2015 and its acquisition of HomeAway in 2015. Today, Expedia is a leading online travel agency with a diverse portfolio of brands and a significant presence in the global travel market.
What is the impact of institutional investors on Expedia’s ownership structure?
Institutional investors, such as The Vanguard Group, Inc. and BlackRock, Inc., play a significant role in Expedia’s ownership structure. These investors hold large stakes in the company and have significant influence over its operations and decision-making processes. Institutional investors can impact Expedia’s ownership structure in several ways, including through their voting power and their ability to influence the company’s strategy and direction.
The presence of institutional investors can also impact Expedia’s stock price and market performance. These investors can drive demand for the company’s shares, which can impact its stock price and market capitalization. Additionally, institutional investors can provide stability and liquidity to the market, which can benefit Expedia and its shareholders. However, the influence of institutional investors can also be a source of concern for some investors, as it can lead to a concentration of ownership and a lack of diversity in the company’s shareholder base.
Can individual investors invest in Expedia?
Yes, individual investors can invest in Expedia by purchasing the company’s shares on the public market. Expedia is a publicly traded company listed on the NASDAQ stock exchange under the ticker symbol EXPE. Individual investors can buy and sell Expedia shares through a brokerage account or online trading platform.
Individual investors can also invest in Expedia through various investment products, such as mutual funds and exchange-traded funds (ETFs). These products provide exposure to Expedia’s shares as part of a diversified portfolio, which can help to reduce risk and increase potential returns. Additionally, individual investors can invest in Expedia through employee stock purchase plans or other equity compensation programs, if available.
How does Expedia’s ownership structure impact its business strategy?
Expedia’s ownership structure can impact its business strategy in several ways. The company’s major shareholders, including institutional investors and individual investors, can influence its direction and decision-making processes. For example, shareholders may pressure the company to focus on short-term profits or to pursue specific business initiatives.
Additionally, Expedia’s ownership structure can impact its ability to make strategic decisions, such as acquisitions and partnerships. The company’s shareholders may have different opinions on the direction of the business, which can impact its ability to make decisions quickly and effectively. However, Expedia’s ownership structure can also provide stability and continuity, which can benefit the company and its stakeholders in the long term.
What are the benefits and drawbacks of Expedia’s ownership structure?
The benefits of Expedia’s ownership structure include the stability and continuity provided by its major shareholders, including institutional investors and individual investors. The company’s ownership structure can also provide access to capital and resources, which can support its growth and expansion. Additionally, Expedia’s ownership structure can provide a diverse range of perspectives and expertise, which can benefit the company’s decision-making processes.
However, the drawbacks of Expedia’s ownership structure include the potential for a concentration of ownership and a lack of diversity in the company’s shareholder base. The influence of institutional investors can also be a source of concern for some investors, as it can lead to a focus on short-term profits rather than long-term growth and sustainability. Additionally, Expedia’s ownership structure can impact its ability to make strategic decisions quickly and effectively, which can be a disadvantage in a rapidly changing market environment.