Tripadvisor Inc announced on Monday the creation of a dedicated committee tasked with evaluating proposals that could lead to strategic agreements, prompting a notable 14.2% increase in its shares during extended trading.
Centerview Partners has been appointed as the financial adviser to this specialized committee, which will also assess recent disclosures from Liberty TripAdvisor Holdings regarding its intentions to explore various options involving both entities. Liberty TripAdvisor, which was formed during Tripadvisor’s spin-off from Liberty Interactive, holds a 21% stake in the online travel agency.
“Liberty TripAdvisor is burdened with significant debt, amounting to $2.75 billion, compared to its market capitalization of $89 million,” noted Bernstein analyst Richard Clarke in a recent commentary.
Clarke further suggested that Liberty TripAdvisor may need to utilize Tripadvisor’s financial resources in some capacity to address its debt obligations.
As Tripadvisor gears up to release its earnings on February 14, analysts are forecasting revenue of $374.4 million and earnings of 22 cents per share, as per LSEG data.
