Several online travel websites are banding together to block Google's $700 million purchase of ITA Software, the leading flight info provider. Expedia.com, Kayak.com, and other companies operating travel websites formed FairSearch.org to convince the Justice Department Google's purchase would give it too much power in the travel sector.
The companies are also sending lobbyists to Capitol Hill to block the deal. If Google does purchase ITA Software, the competing travel websites are finished. Most of them use ITA Software. If Google cuts them off, they'd have to reinvent themselves quickly or die. And these are large companies. Expedia has an $8 billion market cap. Orbitz is around $700 million. This will be an interesting situation to watch. We could see a lot of value disappear.