Tripadvisor Receives Takeover Interest from Apollo Group and Other Buyers

Tripadvisor Receives Takeover Interest from Apollo Group and Other Buyers

By
Sofia Castillo
2 min read

Tripadvisor Receives Takeover Interest from Apollo Group and Others

Tripadvisor (TRIP) is currently the subject of takeover interest from multiple parties, including Apollo Group (APO) and other unnamed entities. The travel information services firm has engaged with advisors and established a special committee to evaluate acquisition proposals. The potential deal could involve acquiring Tripadvisor and spinning off its Viator tours and activities brand or maintaining the company in its current state. Private equity is the most likely buyer, with a sum-of-the-parts valuation of $25 per share. Investors may anticipate an update on a potential deal during Tripadvisor's Q1 earnings report and conference call on May 7-8.

Key Takeaways

  • Tripadvisor (TRIP) is still receiving takeover interest from Apollo Group (APO) and other parties.
  • Tripadvisor has been working with advisors and formed a special committee to evaluate acquisition proposals.
  • Liberty TripAdvisor, which owns 21% of TRIP and has 57% voting control, may consider a transaction for all LTRP and TRIP shares to be purchased for cash.
  • Private equity is the most likely buyer of TRIP.
  • TRIP has a sum-of-the-parts valuation of $25 a share.
  • Investors may expect an update on a potential deal when TRIP reports Q1 results on May 7.

Analysis

The interest in taking over Tripadvisor (TRIP) by Apollo Group (APO) and other entities could lead to a private equity acquisition, with a potential sum-of-the-parts valuation of $25 per share. This development may have implications for Liberty TripAdvisor, given their significant stake in TRIP. The acquisition could result in Tripadvisor spinning off its Viator tours and activities brand or retaining it. The news may also impact the travel information services industry, prompting competitors to reevaluate their strategic options. The announcement of the deal may lead to a boost in TRIP's stock price, while ongoing takeover speculation could bring about volatility until a definitive agreement is reached.

Did You Know?

  • Tripadvisor (TRIP): A leading travel information services company that provides reviews, comparisons, and bookings for hotels, flights, restaurants, and experiences. TRIP is currently the subject of takeover interest from multiple parties.
  • Apollo Group (APO): A private equity firm specializing in leveraged buyouts, investment in real estate, and corporate restructuring. APO is one of the parties showing interest in acquiring TRIP.
  • Special Committee: A group of independent directors formed by TRIP to evaluate acquisition proposals. This committee is responsible for reviewing the details of the proposed transaction, negotiating terms, and providing a recommendation to TRIP's board.
  • Sum-of-the-parts valuation: A method of estimating the total value of a company by evaluating the individual worth of its parts. In the case of TRIP, the sum-of-the-parts valuation is $25 per share, representing the combined value of the company's assets, liabilities, and future growth potential.
  • Liberty TripAdvisor (LTRP): A publicly traded company and a significant stakeholder in TRIP, owning 21% of the company's shares and holding 57% voting control. LTRP may consider a transaction where all LTRP and TRIP shares are purchased for cash.
  • Private Equity: An investment firm primarily focusing on private companies not listed on stock exchanges. They often use leverage to acquire controlling interests in companies, restructure them, and later sell their stakes for a profit. According to the news, private equity is the most likely buyer for TRIP.

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