Tripadvisor Inc. (NASDAQ:TRIP) shares climbed 14% after the company revealed an agreement to divest TheFork, its European restaurant booking and management platform, to American Express (NYSE:AXP) in an all-cash transaction valued at $700 million.
The deal marks a significant step in Tripadvisor's strategy to concentrate resources on expanding its Experiences business, following the company's announcement earlier this year that it was reviewing strategic options for TheFork.
Management said the transaction reinforces the value embedded across Tripadvisor's portfolio while allowing the company to sharpen its focus on higher-priority growth opportunities.
"This agreement reflects two things we believe deeply: the tangible value across Tripadvisor Group's portfolio and our ongoing focus on the opportunity we see ahead in Experiences," commented Matt Goldberg, CEO of Tripadvisor Group.
Tripadvisor stated that the disposal will provide greater financial flexibility as it continues to invest in its Experiences operations.
The deal marks a significant step in Tripadvisor's strategy to concentrate resources on expanding its Experiences business, following the company's announcement earlier this year that it was reviewing strategic options for TheFork.
Management said the transaction reinforces the value embedded across Tripadvisor's portfolio while allowing the company to sharpen its focus on higher-priority growth opportunities.
"This agreement reflects two things we believe deeply: the tangible value across Tripadvisor Group's portfolio and our ongoing focus on the opportunity we see ahead in Experiences," commented Matt Goldberg, CEO of Tripadvisor Group.
Tripadvisor stated that the disposal will provide greater financial flexibility as it continues to invest in its Experiences operations.
3 months ago
