Khosrowshahi joined Uber
After a 12-year stint at Expedia (EXPE), Dara Khosrowshahi resigned as the CEO to join Uber. Uber’s search for a new CEO started in June 2017 when former CEO Travis Kalanick resigned after a series of troubles.
Kalanick’s troubles started in January 2017 and included unflattering videos and emails, sexual harassment allegations, problems with regulators, a workplace culture investigation leading to key firings, a legal fight with Alphabet (GOOGL), drug use reports, alleged distribution of a rape victim’s medical records, problems with self-driven cars (stolen technology and explosion), steep losses, and a power struggle with investors.
Khosrowshahi was the truce choice for the CEO role after infighting between Benchmark and Kalanick. Benchmark was reportedly backing Hewlett-Packard CEO Meg Whitman, while Kalanick backed General Electric CEO Jeffrey Immelt.
How can Khosrowshahi benefit Uber?
Khosrowshahi is starting at Uber amid the company’s immense problems. The company is still without a COO, CFO, and a finance head. However, many analysts think that Khosrowshahi might be just what Uber needs after its former CEO. He has an extremely well-connected network, which might help fill up Uber’s vacant roles. His experience is more related to Uber than either of the other candidates. During his successful stint at Expedia, share prices rose almost 15 times.
In this series, we’ll analyze how Khosrowshahi’s departure impacts Expedia. We’ll also discuss the company’s plans for its new CEO. We’ll look at analysts’ estimates and recommendations for Expedia as well as its valuation multiple.
Investors can gain exposure to Expedia by investing in the PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ), which holds 3.2% of its portfolio in Expedia. PEZ also holds 4.3% in Priceline (PCLN). It doesn’t have holdings in TripAdvisor (TRIP) and Ctrip.com (CTRP).