Expedia CEO Pick a Good Choice
Mark Okerstrom (currently CFO) will become the company's next CEO, replacing Dara Khosrowshahi, who is leaving to head Uber.
We are not surprised that Expedia Inc (EXPE) has announced that Mark Okerstrom (currently CFO) will become its next CEO, replacing Dara Khosrowshahi, who is leaving to head Uber.
As we highlighted in a note earlier this week, Okerstrom is a good candidate to maintain the company’s network advantage (the source of its narrow moat), given he has been heavily involved with corporate strategy and acquisitions at Expedia since 2006 (nearly as long as Khosrowshahi had).
Further, we reiterate our comments from earlier this week that our time with Okerstrom has left us impressed with his communication skills and knowledge of the industry, and believe that Expedia’s culture and growth outlook is intact. It is also encouraging that Khosrowshahi will remain on Expedia’s board of directors, allowing the online travel agency the opportunity to tap into his vast knowledge of the industry.
As a result, we plan to maintain our Standard stewardship rating and fair value estimate, and we see shares as undervalued.
Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.
Dan Wasiolek does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.