Tripadvisor, the popular travel advice site, has announced that it is exploring the possibility of selling the company. The news has caused a sharp increase in Tripadvisor shares during late trading on Monday.
To handle this potential transaction, Tripadvisor has established a committee of independent directors. This committee will assess any proposals brought forward and evaluate their viability. Centerview Partners has been hired as an advisor for this process.
An interesting twist to this story is that Liberty TripAdvisor Holdings, which holds a 21% stake in Tripadvisor common stock and has 57% voting control, recently disclosed in a securities filing that its own board is discussing a potential cash acquisition of both Tripadvisor and Liberty TripAdvisor.
This disclosure stated that Tripadvisor had already formed a special committee—a fact that the company itself did not publicize until Monday. It also noted that any deal would require approval from both Tripadvisor and Liberty TripAdvisor boards.
Following this news, Tripadvisor shares experienced a 16% surge in late trading, while Liberty TripAdvisor's Class A shares saw a 3.9% increase during regular trading.
It remains to be seen what the future holds for Tripadvisor, but this development could potentially lead to significant changes for the popular travel advice platform.
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