IAC is trying to bolster its lagging stock price by separating its large travel business from its other units, which include the HSN shopping network, Ticketmaster and the Ask Jeeves search engine.
The newly independent Expedia, which will include the Expedia Web site, Hotels.com, Hotwire.com and TripAdvisor.com, is at a crossroads. Over the last few years, it has gained market share in the
online travel industry, which is still taking business from traditional travel agents. But as the economy improves and travel picks up, airlines and hotels are constantly pressing to cut the fees they
pay to Expedia. And in the second quarter of this year, Expedia lost market share to Sabre Holdings, Travelocity and Priceline as it cut advertising expenses to maintain profitability.
Read the whole story at The New York Times, August 8, 2005 »
