Google In Discussions To Acquire ITA Software
Google Inc. (NASDAQ:GOOG) is rumored to be in discussions to acquire ITA Software. ITA Software is a travel company that provides flight data to major web and mobile services such as Kayak.com and Orbitz.com. ITA Software clients include American Airlines and Continental Airlines.
Below is a report from Reuters about the discussions:
The concerns are so real that Kayak offered to buy ITA to keep the company out of Google’s hands, a travel industry source close to the situation said.
Kayak was being backed by Expedia Inc, which would have injected under $200 million into Kayak to make a deal happen, the source said.
But the talks went nowhere as Google was in exclusive talks with ITA, the source said, requesting anonymity because the person did not want to be named talking publicly about the search giant.
If Google and ITA strike some sort of deal, it is likely that several travel websites will protest. By owning ITA Software, Google could have enough power to create a travel website of their own and make other travel websites pay them royalties to use ITA’s software. Stay tuned to see what happens.@amitchowdhry or on Google+ at +AmitChowdhry