Skift Take
In theory, Tripadvisor going private might provide the reviews website the space to regain its balance outside the glare of quarterly reports.
Sean O’Neill
Tripadvisor stated Monday it was reviewing a potential sale of the company to Liberty Tripadvisor, which has long held a controlling stake in the travel reviews website.
Tripadvisor stated it had actually formed a special committee of independent directors of its board “to examine any proposals that might be brought forward for a possible deal” in reaction to a “recent Liberty TripAdvisor Holding disclosure of its intent to assess prospective options involving LTRP and Tripadvisor.”
Experts at Bernstein, led by Richard Clarke, wrote in a flash report: “No terms have actually been revealed regarding the prospective purchase rate nor is it clear how Liberty intends to fund the deal at this phase.”
Liberty Tripadvisor currently owns 21% of Tripadvisor common stock however– together with significant shareholder and president and CEO of Liberty Media, Greg Maffei– it effectively has a bulk voting interest.
Another essential voice who will affect the impact of a prospective offer is Greg O’Hara, the founder and senior handling director of Certares. In 2020, Certares made a $325 million investment in Liberty Tripadvisor, and is on the TripAdvisor board.
Liberty Tripadvisor has $2.75 billion in debt. Clarke and the group at Bernstein hypothesize that Liberty Tripadvisor would use some of the cash at Tripadvisor to assist repay this financial obligation.
More might be exposed soon. The Tripadvisor revenues call is on February 15, and the Liberty Tripadvisor profits call is on February 16.