Microsoft ditches Expedia

NEWS Microsoft has dumped its 70 per cent share in online travel site Expedia. It is handing over all of its 33.5 million shares to USA Networks for an as yet undisclosed sum. USA Networks said it also plans to buy a further 3.8 million shares from other parties. The move is part of USA Network's strategy to increase its reach into internet retailing and generate $4bn in annual travel bookings. It also plans to launch a cable television programme and acquire online cruise and holiday package company National Leisure Group. Expedia said today that its fourth-quarter revenues would beat expectations, hitting earnings of 20 to 23 cents a share. Its shares fell nine per cent in trading this afternoon.