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): February 20, 2002

                                  EXPEDIA, INC.
               (Exact Name of registrant as specified in charter)

                 (State or other jurisdiction of incorporation)

                            (Commission File Number)

                        (IRS Employer Identification No.)

                        13810 SE Eastgate Way, Suite 400
                               Bellevue, WA 98005
                    (Address of principal executive offices)
                                   (Zip Code)

       Registrant's telephone number, including area code: (425) 564-7200


          (Former name or former address, if changed since last report)

Item 5.       Other Events.

     On February 20, 2002, Expedia, Inc. announced that it had entered into an
agreement with USA Networks, Inc. in which USA will purchase 936,815 shares of
Expedia common stock for $47 million or $50.17 per share. The proceeds from the
sale will be used by Expedia to purchase the outstanding debt of Classic
Vacation Group, Inc. as part of Expedia's previously announced acquisition of
Classic Custom Vacations.

Item 7.       Exhibits. The following item is attached as an exhibit hereto:

Exhibit 99.1  Press release of Expedia, Inc. dated February 20, 2002.


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

                                      EXPEDIA, INC.

                                         /s/  Gregory S. Stanger
                                      Name:   Gregory S. Stanger
                                      Title:  Sr. Vice President and
                                              Chief Financial Officer

Dated: February 20, 2002