Google's $700m travel tech play

So the rumours were true then - Google has confirmed this morning that it has paid $700m cash for ITA Software.

The speculation in the run-up to the deal was rife, and is likely to continue for some time to come, not least until the deal gets through the regulators.

Google has been quite transparent in terms of its official communications about the deal, giving the market something concrete upon which to base their panic/delight/disinterest. Delete where appropriate.

As ever, the press release doesn't give much away, but a microsite within Google's online press office is more forthcoming.

Based on what we know so far, the following quotations,  taken directly from the microsite, are probably the most relevant.

"Google does not plan to sell airline tickets directly"

"By acquiring ITA Software, Google plans to offer new flight search tools that makes it easier for users to comparison shop for flight options, availability and airfares"

"We are very excited about ITA Software's QPX business"

"ITA Software's European revenues aren't large enough to warrant European regulatory review."

The deal makes a lot of sense in a number of ways, but then are also technological, cultural and commercial implications which have many experts scratching their heads. One thing is for certain and that is uncertainty.

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