A number of US-based tech news sites and blogs have followed up the Expedia/Google rumours. Here are some of the more interesting ones. The general consensus – unlikely but not impossible.
Former Expedia CEO discounts Google rumors
Google ticketing an Expedia buy
Google's Going to Do What?!
Google-Expedia deal seems very unlikely
Rumor confirmed: Google may buy my car
And this interesting analysis and gossip from Musings:
Coping without Google
Working closely together
Martin Cowen, chief writer, Travolution
I guess it took most travel industry professionals about 1/10 of a second to go - NO WAY. Google would kill their AdWords revenue coming in from the travel vertical. I'd hate to be Industry Head Travel at Google and try to squeeze more money out of Travelocity, with an Expedia logo stamped on my forehead.