Giant travel booking site Expedia Inc. is confirmed to be purchasing the leading rental marketplace HomeAway. On Wednesday, the two companies announced their partnership that involved a whopping $3.9 billion.

Expedia is on its way to being the biggest travel booking site with its recent ventures, including its takeover of its rival booking site, Orbitz. The Associated Press reports that Expedia is paying $38.31 in cash and stocks for each share of HomeAway.

Both are reportedly already in agreement, and the deal is seen to be closed and finalized by next year. HomeAway, as per the Associated Press, already has one million paid listings of rental homes perfect for vacationing tourists in 190 countries, which is just what Expedia is looking to partner up for its expansion.

"Bringing HomeAway into the Expedia, Inc. family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step," Expedia chief executive Dara Khosrowshahi said as quoted by AFP.

Khorowshahi said that HomeAway's successful operations impressed the travel booking site, which seeks to provide more options for their consumers.

"We have long had our eyes on the fast growing $100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years," he said as quoted by AFP.

The deal also led many to speculate that Expedia is on its way to beating its competitions including Kayak and Airbnb, which are two of the current biggest rivals of Expedia, AFP reports.

In purchasing HomeAway, Expedia will be adding a huge pile of property listings, including HomeAway's own brand called Vacation Rental By Owner (VRBO), AFP reports. HomeAway, founded in 2005, has also been in the market for quite some time.

After the news broke, HomeAway's shares increased by 22 percent to $39.05, per the Associated Press. Meanwhile, Expedia's shares rose by 2.8 percent to $137.95. And as the numbers rise, HomeAway revealed that the recent partnership is absolutely beneficial for the Austin, Texas-based company.

"We're eager to benefit from Expedia's distribution, technology and expertise, which will allow us to provide an even better product and service experience for our owners, property managers and travelers," HomeAway CEO Brian Sharples said in a statement via USA Today.

"In this way, I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come."