Schedule 13G Amendment No. 1


OMB Number:



   February 28, 2009

Estimated average burden

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Washington, D.C. 20549




Under the Securities Exchange Act of 1934

(Amendment No. 1)*



Expedia, Inc.

(Name of Issuer)

Common Stock, par value $.01 per share

(Title of Class of Securities)



30212P 10 5

                                (CUSIP Number)                                

December 31, 2006

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

¨ Rule 13d-1(b)

x Rule 13d-1(c)

¨ Rule 13d-1(d)


*   The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 30212P 10 5    



Names of Reporting Persons.

I.R.S. Identification Nos. of above persons (entities only)


            Microsoft EX-Holdings, Inc.


  2.   Check the Appropriate Box if a Member of a Group (See Instructions)  
  (a)  ¨  
    (b)  ¨    
  3.   SEC Use Only  
  4.   Citizenship or Place of Organization  

Number of



Owned by





    5.    Sole Voting Power
    6.    Shared Voting Power
    7.    Sole Dispositive Power
    8.    Shared Dispositive Power
  9.   Aggregate Amount Beneficially Owned by Each Reporting Person    
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)  


11.   Percent of Class Represented by Amount in Row (9)  
12.   Type of Reporting Person (See Instructions)  


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Item 1.  


   Name of Issuer      
     Expedia, Inc.      


   Address of Issuer’s Principal Executive Offices      
     3150 139th Avenue SE, Bellevue, WA 98005      
Item 2.  


   Name of Person Filing      
     Microsoft EX-Holdings, Inc. -- Microsoft EX-Holdings, Inc. is a wholly-owned subsidiary of Microsoft Corporation. Microsoft Corporation’s beneficial ownership of the shares reported hereunder was reported on a Schedule 13G filed with the Securities and Exchange Commission on January 30, 2007.      


   Address of Principal Business Office or, if none, Residence      
     6100 Neil Road, Reno, NV 89520      




   Title of Class of Securities      
     Common Stock, par value $.01      


   CUSIP Number      
     30212P 10 5      
Item 3.   If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:   
  Not Applicable      

Item 4.    Ownership      
   Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.      
   (a)    Amount beneficially owned:      
   (b)    Percent of class:      
   (c)    Number of shares as to which the person has:      
      (i)    Sole power to vote or to direct the vote      
      (ii)    Shared power to vote or to direct the vote      
      (iii)    Sole power to dispose or to direct the disposition of      
      (iv)    Shared power to dispose or to direct the disposition of      
Item 5.    Ownership of Five Percent or Less of a Class   
   If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following  ¨   
Item 6.    Ownership of More than Five Percent on Behalf of Another Person      
   Not Applicable      
Item 7.    Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person
   Not Applicable
Item 8.    Identification and Classification of Members of the Group      
   Not Applicable      
Item 9.    Notice of Dissolution of Group      
   Not Applicable      
Item 10.    Certification      
   By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and held in the ordinary course of business and were not acquired and held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and held in connection with or as a participant in any transaction having that purpose or effect.      


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After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.


January 29, 2007


/s/ Keith R. Dolliver


Keith R. Dolliver, Assistant Secretary



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