Google acquires ITA for $700m, dives headfirst into airline ticket search
By Darren Murph 
posted July 2nd 2010 1:02PM
posted July 2nd 2010 1:02PM
[Thanks, Matthew]
Google and ITA Software Sign Acquisition Agreement
Cambridge and Mountain View, Calif. (July 1, 2010) - ITA Software, Inc., a flight information software company, and Google Inc. (NASDAQ: GOOG) today announced that they have signed a definitive agreement for Google to acquire ITA for $700 million in cash, subject to adjustments.
"ITA's very talented team has created an impressive product to organize flight information," said Eric Schmidt, Chairman and CEO of Google. "Their technology opens exciting possibilities for us to create new ways for users to more easily find flight information online, and we're looking forward to welcoming them to Google."
"It is a privilege to work with a most skilled and dedicated team to build innovative technologies that people use every day," said Jeremy Wertheimer, CEO & President, ITA Software, Inc. "We are all looking forward to continuing and expanding our efforts as part of Google."
Founded in 1996 by a team of MIT computer scientists, ITA's technically advanced solutions for organizing flight information were hailed as a catalyst for change in the online travel industry. Its innovative algorithms and deep airline industry expertise create a customizable flight data organization tool used by both airlines and online travel agencies.
The deal will allow Google to pursue the creation of new flight search tools that will enable users to find better flight information more easily on the Internet. Google is excited about ITA's QPX business and the opportunity to work closely with current and future customers. Google will honor all existing agreements and looks forward to adding new partners. More information about the deal is available at http://www.google.com/press/ita/.
Both companies have approved the transaction, which is subject to customary closing conditions.
Webcast and Conference Call Information
The company will host a conference call and webcast at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) today to discuss the acquisition. To access the conference call, please dial 888-778-9069 domestic and 913-312-0953 internationally. A live audio webcast of the conference call will be available at http://investor.google.com/webcast.html.
About ITA
ITA Software (www.itasoftware.com) creates innovative solutions for the travel industry. ITA's QPX software tool for organizing flight information is used by leading airlines and travel distributors worldwide including Alaska Airlines, American Airlines, Bing, Continental Airlines, Hotwire, Kayak, Orbitz, Southwest Airlines, TripAdvisor, United Airlines, US Airways, Virgin Atlantic Airways and others. ITA is now offering a completely new airline passenger reservation system to improve the customer experience. ITA was founded by computer scientists from MIT and is headquartered in Cambridge, Mass., USA.
About Google Inc.
Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.
Serious Google, do you need to control the whole earth?
@rmbrown09
The Earth first, the galaxy next, and the universe after it's all said and done.
@rmbrown09
Yes. Why do you ask? Didn't they give you a droid to play with and remain distracted? Go play.
@rmbrown09
And you thought Google Earth was just a program...
@adamorjames
Exactly.
Where is Lord Vader?
@rmbrown09
Bing has similar function but they don't own them just sponsor.
@rmbrown09
"We do what we must, because we can".
@okok only Apple Fanboys bought i
The only thing is that Bing used to get its data from ITA which is now owned by Google! :)
@rmbrown09
Hey I have no problem with this. I rather like the idea of finding the lowest airfare possible, from my android powered phone. In fact, I see nothing wrong with this.
@Slick Regulators are going to have a fun time with this one. Some may consider Google's move anti-competitive.
@okok only Apple Fanboys bought i
You sir are an idiot.
@Slick Yea no I actually have no problem with Google, they do some pretty cool stuff.
@corylulu
Thank you for saving me the trouble.
@corylulu Probably trying to think of something witty to post.
@okok only Apple Fanboys bought i
Or because I didnt feel like wasting my time. But w/e I'll do it.
Technology expands by taking whats already out there and trying to make it better. If companies only expanded on their own innovation, then we would have to buy a lot of really crappy products to get what we want done.
Now if you understand anything about technology, please stop saying that one company is coping another. It's simple how tech world works.
@rmbrown09 : Now Google will know where you are and where you are going to be. Hopefully this results in cheaper airfare.
@okok only Apple Fanboys bought i
Or they just thought it was a good idea.
Just sayin. Thats how most companies work.
@okok only Apple Fanboys bought i
It is not the only thing that they have copied off of Bing.
@rmbrown09 If I had to pick any one ginormous corporation to rule the world and negotiate with the aliens when they invade I'd pick Google. It's the least evil of all huge companies.
@rmbrown09
Shhh. Let's all welcome our new Google Overlords.
@rmbrown09 Apple will get the trains then.
@okok only Apple Fanboys bought i
Because Bing is obviously a completely original idea. Bing is still playing catch up with Google in a (admittedly very minor) feature Google likes to call 'providing accurate and relevant search results'.
@okok only Apple Fanboys bought i
I honestly cannot for the life of me figure out if you're the most ignorant man in the world or just the best troll. Either way, bravo!
@ViperVin How would this be considered anti-competitive? Microsoft, as an example of an alternative suitor, could have bought ITA.
What is next?
Google restaurant?
@techlord only if they can figure out how to build the Bistromatic Drive. Read it. Love it. Live it.
http://en.wikipedia.org/wiki/Technology_in_The_Hitchhiker's_Guide_to_the_Galaxy#Bistromathic_drive
World domination phase 1
@okok only Apple Fanboys bought i
Orkut has 100 million active users. Gmail has 176 million users monthly. 160,000 android handsets are sold a day. Google Docs was a big enough thing to make Microsoft make a cloud office. Google Chrome is the 3rd most popular browser. Google Voice is a big thing to a minority, AdSense is a massive advertising platform, whilst Google Wave is still in development stages, as is the biggest book scanning project ever.
Google fantasy land is quite fun. I'm on this site my imagination invented called "Youtube", in my head it's the biggest video sharing website in the world.
@okok only Apple Fanboys bought i
Lets not forget Google Electricity and Google Broadband... Google Voice... um, Google Talk, um I don't know... Why complain about a company that provides you everything and doesn't cost you anything?
I'm glad to see you are praising Bing, but you're only doing that because Apple doesn't have something of their own. But Weezus is right, and numbers don't lie. Personal preferences have no place in analytics.
The new goggle!!! Is just like Bing....the bad news is that Bing was first..LOS LINKS!!!! WTF IS LOS LINKS..is LAS CONEXCIONES BING...try the translator it works LOL....
@Eddy120876
What the hell are you smoking?
who thinks they can guess the next google product lol
- goolge airline
Google. France just declared them a monopoly.
In other news, I really enjoy Bing on my iPhone.
I wonder if they will call it Google Skynet...
Google's just asking to be declared a monopoly.
Google's Reach: To infinity and beyond!!
What's the point of searching multiple sites, when there are only one or two flights and all the seats are booked?
Will this do anything to reduce the price of an airline ticket?
Great acquisition for Google but for 700 million? As an investor that's quite a lot of cash to fork over. I can understand paying whatever for AdMob.
@MiddleWay I see this being implemented as a 'Find a flight' option right next to 'get directions' on google maps / nav.
They likely wouldn't have paid a dime unless the company was already profitable / becoming profitable - and they likely won't can the work that's already been done.
So now a profitable company, becomes more so simply by being backed by Google, and Google gets a new feature to add to the Maps portfolio.
@cicada yes please. How cool would it be to pick the modes of transit you want to take somewhere and get complete directions in google maps? Me: Bike,bus, train. let google maps figure out the fastest route based on that.
i Googled "google services". there are 511 million of them :D
it's like that song "it's the end of the world as we know it" except I don't feel fine.
Resistance is futile? I f***ing hate Google.
Google is indexing the world
Man, if it were MS buying this company... would there be more snark?
So, will Google be closer to Bing in feature parity? Have they emulated all the Bing verticals yet?
"no plans to sell airline tickets [directly] to consumers."
Why not?
It all makes sense now!
Google is skynet!
FROM NY Times:
==========
Samuel R. Miller, an antitrust lawyer at Sidley Austin, said: “I would think antitrust enforcers will take a very hard look at this. Every time Google makes another acquisition, it only reinforces the argument that they are basically trying to acquire other companies that may present potential competition to their core dominance in paid search.”
Google does not compete directly with ITA, but many of its largest rivals in the travel search market, including Microsoft, use ITA’s data.
ITA was founded in the 1990s by computer scientists from the Massachusetts Institute of Technology. The company revolutionized the ability of consumers to find the cheapest fares by making it easy to compare fares among airlines. It has licensed its product widely, and customers include companies like American Airlines and Continental Airlines. Web sites like Hotwire, Kayak, Orbitz and Farecast, which is now part of Microsoft’s Bing search service, also use ITA’s software.
Mr. Schmidt said that Google would honor all existing agreements and seek to add new partners.
“Airline travel and search are a perfect opportunity for more innovation, more investment and more interesting products,” Mr. Schmidt said. “The whole idea is to give people more of what they want, and more information when they are searching.”
Companies that may lobby against the deal include Microsoft, Expedia and Kayak; reservation networks like Travelport, Sabre and Amadeus; and possibly even some airlines.
=============
Seriously, couldn't they just license the data instead of trying to own it? They could still provide a good service without needing to own the data. I don't get why that doesn't freak people out.
amazing, they acquired a company for less than it costs for tiger to divorce his wife :x
Tell John Skynet's rate of development has increased substantially.