Filed by Expedia, Inc.
                                               Pursuant to Rule 165 and Rule 425
                                                under the Securities Act of 1933
                                                  Subject Company: Expedia, Inc.
                                                   Commission File No. 000-27429


This document contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934, including statements regarding the pending acquisition of a controlling
interest in Expedia, Inc. ("Expedia") by USA Networks, Inc. ("USA").
Forward-looking statements may be identified by, among other things, the words
"may," "will," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential" or "continue" or the negative of such terms
or comparable terms. These statements are only predictions and actual results
could differ materially from those anticipated in these statements based upon a
number of factors including final adjustments made in closing the quarter and
those identified in the Company's filings with the SEC. We have based all of our
forward-looking statements on information available to us as of December 12,
2001, and we are not obligated to update any of these forward-looking
statements.




Email message to Expedia, Inc. employees from Expedia, Inc.'s Chief Financial
Officer, Gregory Stanger:

"Please see the attached press release which went out this morning. For the
reasons discussed in the press release with respect to a potential delay in the
Expedia / USA transaction, we have not distributed warrants to employee stock
option holders as we anticipated doing on December 7th. A public statement will
be made regarding the status and timing of the Expedia / USA transaction as soon
as possible.

Greg".

Attached press release:


[EXPEDIA, INC. LOGO]


                                                       For Release 9:00 a.m. EST
                                                               December 12, 2001

Expedia, Inc. Statement on Published Reports Regarding USA Networks, Inc. and
Vivendi Universal


     BELLEVUE, Wash. - December 12, 2001 - Expedia, Inc. (Nasdaq: EXPE) today
commented on published reports that USA Networks, Inc. ("USA") is in discussions
with Vivendi Universal ("Vivendi") regarding an acquisition by Vivendi of
certain assets of USA. To the extent such a transaction is announced by the
parties or is considered probable, this may impact the timing of the
presentation to Expedia shareholders for approval of the pending USA/Expedia(R)
merger transaction and may require the filing and distribution to Expedia
shareholders of an amended joint prospectus / proxy and information statement.

     Expedia will conduct its scheduled shareholder meeting on December 17th
at which time shareholders will elect directors and will transact any other
business as may properly come before the annual meeting including, to the extent
a USA/Vivendi transaction has not been announced and is considered not probable,
approval of the USA/Expedia merger transaction.

     A public statement will be made regarding the status and timing of the
Expedia / USA transaction as soon as possible.

                                      ####

This press release contains forward-looking statements relating to future events
or future financial performance that involve risks and uncertainties. Such
statements can be identified by terminology such as "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"potential" or "continue" or the negative of such terms or comparable terms.
These statements are only predictions and actual results could differ materially
from those anticipated in these statements based upon a number of factors
including final adjustments made in closing the quarter and those identified in
the Company's filings with the SEC.

Expedia, Expedia.com, the Expedia logo and Travelscape.com are either registered
trademarks or trademarks of Expedia, Inc. in the U.S. and Canada. The names of
actual companies and products mentioned herein may be trademarks of their
respective owners.


For investor information about Expedia, Inc.:

     Phone: (425) 564-7233; Email: investor@expedia.com or visit
http://investor.expedia.com

For more information, press only:

     Darcy Bretz, Edelman Public Relations, (312) 240-2619

darcy.bretz@edelman.com or visit http://expedia.com/daily/press


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