Shares of Google were gaining 0.5% to $540.55, and Expedia was gaining 2.2% to $70.05 in after-hours trading.
According to Bloomberg many employees of Room 77, including co-found and CTO Calvin Young and a number of engineers are joining Google. In a letter announcing the deal the startup also said it will distribute "tens of millions of excess cash" to its investors.
The licensing deal will help Google compete with online travel booking companies such as Priceline (PCLN).
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"Google Inc. (Google), is a global technology company. The Company's business is primarily focused around key areas, such as search, advertising, operating systems and platforms, enterprise and hardware products. The Company generates revenue primarily by delivering online advertising. The Company also generates revenues from Motorola by selling hardware products. The Company provides its products and services in more than 100 languages and in more than 50 countries, regions, and territories. Effective October 22, 2013, Google Inc acquired FlexyCore, a developer of software. Effective January 15, 2014, Google Inc acquired Impermium Corp, a developer of SaaS application software. Effective February 7, 2014, Google Inc acquired the remaining 88% interest in Nest Labs Inc. Effective February 21, 2014, Google Inc acquired Spider.io, a provider of online fraud detection services. Effective March 12, 2014, Google Inc acquired Green Throttle Games."