Tripadvisor Stock Drops as Buyout Deal Falls Through

- Advertisement -

The Rise and Fall of Tripadvisor: A Look at Recent Developments

Key Takeaways

  • A possible deal for Tripadvisor was rejected Wednesday by a special committee considering alternatives for the online travel site, sending the company’s shares down nearly 29%.
  • The committee was formed in February after Tripadvisor’s controlling shareholder said it was looking at potential transactions.
  • The news of the abandoned deal came in the company’s first-quarter financial report, which showed sales at its Tripadvisor brand fell in the period.

A decision not to pursue a merger sent shares of Tripadvisor (TRIP) plunging nearly 29% on Wednesday.

- Advertisement -

Special Committee Rules Out Sale

The online travel site reported that a special committee formed to consider a deal determined that for now “there is no transaction with a third party that is in the best interests of the Company and its stockholders.” The company added that the committee would “continue to evaluate proposed alternatives as appropriate.”

- Advertisement -

The group was put together in February after Tripadvisor said that Liberty TripAdvisor Holdings (LTRP), the controlling shareholder, would be considering various options involving LTRP and the company. LTRP was reportedly approached by at least one bidder to acquire Tripadvisor.

Narrowing Losses

Along with the abandoned prospective deal news, the company announced it posted a first-quarter loss of $59 million, or 43 cents per share, narrowing from a loss of $73 million or 52 cents per share in the year-ago period. That result included the net impact of $42 million in incremental income tax expense tied to a previously reported Internal Revenue Service (IRS) audit settlement. Adjusted net income was $17 million, with adjusted earnings per share (EPS) coming in at 12 cents, better than expected. Revenue rose 6% year-over-year to $395 million, in line with estimates.

Tripadvisor Brand Sales Decline

Sales at the company’s Tripadvisor brand dropped 2% to $240 million. They were up 23% to $141 million at tour provider Viator, and 17% higher at $41 million for restaurant booking site TheFork. Total costs and expenses for the company rose 6% to $410 million.

- Advertisement -

Shares of Tripadvisor fell nearly 29% to $18.16 on Wednesday, their lowest level this year.

Image source: NurPhoto / Contributor / Getty Images


In conclusion, the recent developments surrounding Tripadvisor have been met with mixed reactions from investors and industry analysts. While the decision not to pursue a merger may have initially caused a significant drop in the company’s stock price, the narrowing losses and positive revenue growth indicate that there may still be potential for recovery and growth in the future. As the special committee continues to evaluate proposed alternatives, it will be interesting to see how Tripadvisor navigates these challenges and positions itself for success in the competitive online travel market.

For more information on this topic, you can read the original article on Investopedia.

News Desk

- Advertisement -

Explore more

GameStop Stock Surges 47% as ‘Roaring Kitty’ Plans Livestream | ORBITAL...

GameStop Shares Surge as "Roaring Kitty" Plans First Livestream in Three Years GameStop (GME) shares experienced a significant surge of over 47% on Thursday following...

Toby Keith’s Age at Death | ORBITAL AFFAIRS

Toby Keith was the legendary country music artist who passed away but his legacy will never be forgotten as he was renowned for his...
Bel-Air Season 3 Release Date, Cast, and Plot | ORBITAL AFFAIRS

Bel-Air Season 3 Release Date, Cast, and Plot | ORBITAL AFFAIRS

The Bel-Air Season 3 Peacock release date is almost approaching, and fans are eager to begin viewing the show. The new season of the...

Starbucks Partners with Grubhub for Home Delivery

Starbucks Partners with Grubhub for Home Delivery Service Starbucks, the renowned coffee chain giant, is making a strategic move to boost its sales by teaming...

Rihanna’s New Business Venture: ORBITAL AFFAIRS

Pop sensation Rihanna disrupted the beauty market in 2017 with her revolutionary “Fenty Beauty” cosmetics range. In 2020, she debuted a skincare brand called...
All Her Fault Release Date: True Story? | ORBITAL AFFAIRS

All Her Fault Release Date: True Story? | ORBITAL AFFAIRS

Sarah Snook will star in the upcoming suburbia thriller series Peacock’s All Her Fault. The story is about a woman who, on her way...

Is Top Gun a True Story? | ORBITAL AFFAIRS

“Top Gun,” the iconic 1986 film, captivates and inspires the audience towards the real-life training programs of Navy Aviators. The film’s unique plot is...

J.M. Smucker Stock Rises on Hostess Brands Acquisition

The J.M. Smucker Co. Reports Strong Quarterly Profit Boosted by Hostess Brands Acquisition Key Takeaways: J.M. Smucker reported better-than-expected quarterly profit on cost-cutting, higher...