Expedia Buys HomeAway for $3.9B, yes B for Billion

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Austin-based HomeAway sold for $3.9 billion dollars to Expedia today. It’s a big number but it might surprise you know that AirBnB is valued about six-times that but suffice it to say, the vacation rental space is booming.

“We have long had our eyes on the fast-growing $100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years,” Expedia chief executive Dara Khosrowshahi said in a prepared statement. “Bringing HomeAway into the Expedia, Inc. family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step.” (Source – VentureBeat)

This sale is also a huge win for Austin as well as it is likely to mint some new millionaires, entrepreneurs that will help continue to grow and build Austin’s startup community.

Capital Factory Home Away Expecia

I actually didn’t know that HomeAway was headquartered in Austin until I moved here and learned that the headquarters was three blocks from our place. I had a chance to meet some great people from HomeAway during my time at Techstars and it’s definitely a company that has helped to put Austin on the map along with companies like BazaarVoice, Spredfast, WPEngine and many more.

Huge congrats to the HomeAway team, something tells me there will be some serious celebrations in Austin this weekend!

Photo Credit: Jeda Villa Bali via Compfight cc

{ 4 comments… add one }

  • fizz November 4, 2015, 11:03 pm

    Wow, that’s a serious chunk of dough that HomeAway investors will be banking!

    Had to chuckle after rewatching the youtube video of HomeAway’s CEO Brian Sharples delivering a seminar presentation where he said: “I mean, we bought a website in the United States called VacationRentals.com for 35 million bucks. The only reason we bought it was so Expedia couldn’t have that URL.”

    https://www.youtube.com/watch?t=15m19s&v=U6gbCDL02R0

    Reply
  • Scott Alliy November 5, 2015, 6:18 am

    I saw this Morgan
    There is a much bigger picture to consider here. While each multi billion dollar announcement may be exciting on the surface there is much underlying negative effect.
    To my point SMB entrepreneurs are feeling more like ants in an Elephant herd. And this psychological wall and submission to too much power in too few hands could ultimately stifle entrepreneurial creativity and prevent potential life changing products and services to be launched.
    Sure there are continuous entrepreneurial conferences startup incubators etc but the real question is just how much negative effect these colossal mergers IBM weatherchanner Endurance constant contact etc will have on the entrepreneurial landscape?

    Time will tell. It always does! Are we a better society, in a better economic position than before the age of the behemoths? Each of us will have to face the facts, read the numbers and decide for yourself.

    SBA

    Reply
  • LifaNati November 5, 2015, 2:18 pm

    Is there a like button? Couldn’t agree more Scott. A huge sale proving those with deeper pockets have all the power. By the way, thanks for the info Morgan. I have been following your blog posts for a while now and I must say it’s been very informative.

    Reply
    • Morgan November 10, 2015, 8:08 pm

      Thanks @LifaNati – appreciate the kind words! 🙂

      Reply

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