8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 8-K

                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported): August 16, 2006


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                                  EXPEDIA, INC.
             (Exact name of registrant as specified in its charter)
             ------------------------------------------------------


         Delaware                     000-51447               20-2705720
(State or other jurisdiction of      (Commission           (I.R.S. Employer
incorporation or organization)        File Number)         Identification No.)

3150 139th Avenue S.E., Bellevue, Washington                      98005
(Address of principal executive offices)                        (Zip Code)



Registrant's telephone number, including area code:         (425) 679-7200

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[   ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)
[   ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)
[   ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))
[   ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))






ITEM 8.01.    OTHER EVENTS.
On August 16, 2006, Expedia, Inc. (the "Company") announced the pricing of the
previously announced planned institutional private placement of senior unsecured
notes guaranteed by certain of its subsidiaries (the "Notes") pursuant to Rule
144A under the Securities Act of 1933, as amended (the "Securities Act"), and to
persons outside of the United States pursuant to Regulation S under the
Securities Act. The placement of the Notes is expected to close on August 21,
2006.

The press release announcing the pricing is being issued pursuant to and in
accordance with Rule 135c under the Securities Act and a copy of this press
release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

ITEM 9.01.    FINANCIAL STATEMENTS AND EXHIBITS.

(d) EXHIBITS

99.1   Press release issued by the Company on August 16, 2006.


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                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

Date: August 16, 2006

                                             EXPEDIA, INC.

                                                  /s/ Dara Khosrowshahi
                                             By:--------------------------------
                                                Name:  Dara Khosrowshahi
                                                Title: President and CEO


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                                  EXHIBIT INDEX

     99.1   Press release of Expedia, Inc., dated August 16, 2006.


                                                                    EXHIBIT 99.1


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EX-99.1

 EXPEDIA, INC. ANNOUNCES PRICING OF SENIOR UNSECURED NOTES OFFERING

     BELLEVUE, WASH. - AUG. 16, 2006 - Expedia, Inc. (NASDAQ: EXPE) announced
today that it has agreed to sell $500 million of 7.456% senior unsecured notes
guaranteed by certain of its subsidiaries due 2018 (the "Notes"). Each Note will
also be payable at par at the option of the holder thereof in August 2013. The
placement of the Notes is expected to close on August 21, 2006. Expedia, Inc.
plans to use the net proceeds of the offering for general corporate purposes,
which may include repurchase of common stock, repayment of debt, acquisitions,
investments, additions to working capital, capital expenditures and advances to
or investments in its subsidiaries.

     The offering will be made only to qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and to certain non-U.S. persons in accordance with Regulation
S under the Securities Act. The Notes will not be registered under the
Securities Act and may not be offered or sold without registration unless an
exemption from such registration is available. This notice is issued pursuant to
Rule 135(c) of the Securities Act and does not constitute an offer to sell the
Notes, nor a solicitation for an offer to purchase the Notes.

ABOUT EXPEDIA,INC.

     Expedia, Inc. is an online travel company, empowering business and leisure
travelers with the tools and information they need to efficiently research,
plan, book and experience travel. It has created a global travel marketplace
used by a broad range of leisure and corporate travelers and offline retail
travel agents. It makes available, on a stand-alone and package basis, travel
products and services provided by numerous airlines, lodging properties, car
rental companies, destination service providers, cruise lines and other travel
products and services. Its portfolio of brands includes: Expedia-branded
websites, Hotels.com, Hotwire.com, Worldwide Travel Exchange ("WWTE") and
Interactive Affiliate Network ("IAN"), Classic Vacations, Expedia Corporate
Travel, eLong and TripAdvisor.

     THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS REGARDING THE FUTURE
PERFORMANCE OF EXPEDIA, INC., WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. THESE STATEMENTS ARE SUBJECT TO A VARIETY OF
RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY
FROM CURRENT EXPECTATIONS. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT
LIMITED TO, EXPEDIA, INC.'S ABILITY TO CONSUMMATE THE OFFERING OF THE NOTES.
ADDITIONAL CAUTIONARY STATEMENTS REGARDING OTHER RISK FACTORS THAT COULD HAVE AN
EFFECT ON THE FUTURE PERFORMANCE OF EXPEDIA, INC. ARE CONTAINED IN ITS FILINGS
WITH THE SEC, INCLUDING ITS REPORTS ON FORMS 10-K, 10-Q AND 8-K. EXPEDIA, INC.
UNDERTAKES NO OBLIGATION TO RELEASE PUBLICLY THE RESULT OF ANY REVISIONS TO
THESE FORWARD-LOOKING STATEMENTS THAT MAY BE MADE TO REFLECT EVENTS OR
CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF
UNANTICIPATED EVENTS.

CONTACTS: INVESTOR RELATIONS       COMMUNICATIONS
          Stu Haas                 David Dennis
          (425) 679-3555           (425) 679-7430
          IR@EXPEDIA.COM

EXPEDIA AND EXPEDIA.COM ARE EITHER REGISTERED TRADEMARKS OR TRADEMARKS OF
EXPEDIA, INC. IN THE U.S. AND/OR OTHER COUNTRIES. OTHER LOGOS OR PRODUCT AND
COMPANY NAMES MENTIONED HEREIN MAY BE THE PROPERTY OF THEIR RESPECTIVE OWNERS.

(C) 2006 Expedia, Inc. All rights reserved. CST 2029030-40.

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