Uber deal for Expedia could make ‘story even more complicated,’ says BofA

After The Financial Times said that Uber (UBER) has approached advisors in recent months to explore the possibility of acquiring Expedia (EXPE), BofA noted that the article was clear that Uber’s interest is very early stage and no discussions are in progress. The firm thinks Uber’s M&A team likely considers all types of deals, and based on language in the FT article, an Expedia deal may have stood out more than other potential M&A options. As a combined company, Uber/Expedia could offer bundled travel packages and other positives could include Uber CEO Dara Khosrowshahi’s deep experience with Expedia as the company’s former CEO. However, the firm notes Uber stock was trading 3% lower after the report and says “a potential acquisition could make an already-complex Uber story even more complicated.” The firm, which thinks Uber investors may consider an OTA partnership strategy, versus acquisitions, more favorable in order to keep a simpler story, continues to view Uber as “an attractive growth compounder” and maintains a Buy rating on the shares.