Expedia nears deal to sell $1 billion stake to private equity
Illustration: Aïda Amer/Axios
Apollo Global Management and Silver Lake are in "advanced talks" to invest around $1 billion in travel-booking portal Expedia (Nasdaq: EXPE), per the Wall Street Journal.
Why it matters: Private equity has begun bargain-hunting, and Apollo and Silver Lake have emerged as the most eager coupon-clippers.
- Details: Expedia closed trading yesterday with a market cap just north of $8 billion, having fallen around 50% this year. The new investors would be expected to receive a board seat.
- Added intrigue: Silver Lake just invested in Airbnb, which competes with Expedia's HomeAway platform.
- The bottom line: "Companies of all stripes — but especially in the travel sector — have been drawing down on credit lines and looking for other ways to stockpile cash to withstand potentially months of social-distancing measures. Expedia’s peers, including Sabre and Booking Holdings, have both issued new debt in recent weeks." — Cara Lombardo, WSJ