The Times reported that Amadeus and Travelport, which operate three of the four major global distribution systems, have abandoned merger talks and will pursue separate public offerings in Madrid and London, respectively, in the interim.
Hey, the two travel distribution powerhouses, owned by private equity companies, can always get back to their wooing later, The Times reports.
Asked about the report, Travelport GDS spokeswoman Jill Brenner says: "We never comment on market rumor or speculation."
There indeed was some synergy on this one matter between the two companies. An Amadeus spokesman chimed in: "As a matter of policy, Amadeus does not comment on market speculation."
I have no such shackles, obviously.
In fact, in my decade of writing about travel distribution, perhaps there has been no greater sport than speculating about GDS mergers, but I am not buying this one.
Although I doubt U.S. regulators would have much of a problem with an Amadeus-Travelport merger given Amadeus' small market share in the U.S., I have to believe that European competition watchdogs would wince at an Amadeus-Travelport merger because the tag-team likely would dominate many European GDS markets to the detriment of Sabre.
An integration of Travelport and Amadeus also would bolster the new entity's online offerings, providing a bigger challenge to Expedia Inc., and would enhance Amadeus' airline services' footing, giving the merged companies a stronger foothold in the U.S. and other markets.
Regarding the airline hosting business, Amadeus wouldn't have to feel so wounded about its stalled agreement to develop an Altea solution for United Airlines because Travelport's Apollo system could continue attracting revenue from the airline as its longtime internal reservations' system provider.
Meanwhile, IPO fever is gripping travel and other industries as the market heats up and failed private equity experiments have their days of reckoning. Kayak, Sabre, Travelport and Amadeus all are mulling cashing in through public offerings.
In the distribution arena, the development means the Sabre, Galileo (its sister Apollo), Worldspan and Amadeus GDSs all may transition from private to public hands, although their private-equity owners could conceivably still pull the strings and retain control.
Who benefits from these once public company, now private company, and pending public company transitions, is fairly clear.
It isn't the companies' services, employees or customers who benefit, but the monied set which enjoys its addiction to multiple transactions.
Just look at the way Travelport went private, and spun Orbitz Worldwide into an IPO. Travelport's ownership, the Blackstone Group and One Equity Partners, cashed in big-time early on after taking Travelport private, and left OWW twisting in the wind to deal with mountains of debt.
So now, as global stock markets begin to recover, the stage is set for numerous public coming-out parties as financiers toy with household-name travel brands.