Expedia, Orbitz to Merge as Travel Sites Defend Turf

Expedia and Orbitz Worldwide, which squeezed agents out of the travel business, agreed to merge as they struggle to hang on to the middle of a market that is now squeezing them.

The deal would bring many of the top US travel-booking sites under one roof. The $1.34 billion transaction is sure to spark grumbling from hotel and airline operators, who are wary of having even bigger companies standing between them and their customers. Though it would leave Expedia and Priceline Group towering above the rest of the industry, the planned merger underscores the pressure brought to bear by new rivals including Google.