Uber (UBER.US) is reportedly in talks to acquire Expedia (EXPE.US), sending the latter's shares up nearly 7% before the market opened.

Expedia (EXPE.US) rose nearly 7% before the markets opened on Thursday, after reports that Uber (UBER.US) was considering buying the company to diversify its business.

Uber has been in talks with advisers about making a bid for the travel booking company in recent months, following a third-party approach, according to people familiar with the matter.

Interest at Uber has been described as being at a very early stage and may not result in any deal. The ride-hailing company has not made a formal approach and is not currently in talks, according to the report.

The focus of Uber's discussions has been on the role of Dara Khosrowshahi, the company's chief executive, who was Expedia's chief executive from 2005 to 2017 and remains a non-executive director. Given his relationship with Expedia, any engagement with the company would likely be friendly, and he would need to recuse himself from any deal negotiations.

Uber, Expedia and Expedia chairman Barry Diller declined to comment.