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Expedia Will Pay Orbitz $115 Million if Antitrust Complications Scuttle Acquisition

Dennis Schaal photo
Dennis Schaal

Photo Caption: Expedia Inc. CEO would rather be writing a $1.6 billion check to Orbitz Worldwide shareholders than paying Orbitz Worldwide a $115 million breakup fee if the deal doesn't pass an antitrust review. 

Skift Take

The antitrust prospects of Expedia Inc.'s $1.6 billion acquisition of Orbitz Worldwide hinge on which prism competition authorities choose to view the deal. Expedia would have a 75 percent share of the U.S. online travel agency market but consumers have plenty of other ways to book their trips, too.

If antitrust or other legal complications block Expedia Inc.'s acquisition of Orbitz Worldwide, Expedia would have to pay Orbitz a $115 million termination fee. That detail emerged as Expedia Inc. filed a copy of the merger agreement with the Securities and Exchange Commission. On the other hand, if Orbitz Worldwide were to accept a proposal superior to Expedia Inc.'s $12 per share, or $1.6 billion cash offer, then Orbitz would have to pay Expedia a $57.5 million termination fee. Orbitz Worldwide is prohibit

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