Let's file this in the "rumors too stupid to be true" folder.
Shares of Expedia
Why does everybody suddenly want a piece of the online travel portal? Reuters claims that the gains are tied to rumor-mill chatter about Google
If you believe the gossip, I've got some really bad news for you on the sad state of the Tooth Fairy.
Don't get me wrong. The math works. Expedia's stock has been beaten down to the point where it's now trading for less than eight times this year's projected profitability. Google's multiple is at 16, so it can pay twice as much for Expedia and the deal would still be accretive (and even more so once you factor in any potential deal synergies).
However, just because it makes sense on paper doesn't mean that it makes sense in the noggin.
Finding a flight plan
Google would love to cash in on the lucrative travel market. It began spitting back flight-tracking information to search queries two years ago. However, what would Google do with Expedia?
More importantly, what would it mean to sponsors -- and potential advertisers -- like priceline.com
Can anyone really explain how this deal will ever happen?
If you're nodding your head, have a seat.
I've got news for you: The Tooth Fairy died after washing down a mouthful of Pop Rocks with a swig of Coca-Cola.
Brush your teeth and peruse these sweet reads: