Barry Diller: “I am the Spin Master”

by: Inelegant Investor - February 8th, 2012  

We came across this gem recently while perusing a transcript of IAC/InterActiveCorp’s(IACI) 4th quarter

English: Barry Diller at the 2009 premiere of ...

The Spin Master

conference call.  Diller is indeed a veteran of many spinoffs, including Expedia(EXPE) and its new progeny, TripAdvisor(TRIP)

Ross Sandler – RBC Capital Markets

Just two quick questions. Barry on that theme of using the past to kind of look at the future, given the early successes of the Expedia, TripAdvisor spin, and the success of the original IAC split-up, do you think there is any efficiency to be gained by separating personals now that is a more global business?

….

Barry Diller

Well, I am the spin master. I am so pleased because we started doing this before it kind of became a bit popular spinning things off and when they got to be, we thought, of sufficient size that they ought to be up on their own. And that general sensibility prevails. But I do not think that it makes sense at this time. I don’t think my colleagues at all disagree with me that we would now spin off the personals business or spin off the search business. So I think the real test on that is: are they being maximally managed and in this configuration? And I think results would – could kind of confirm that.

As far as the future, I think that depending upon what happens with this company, company is this IAC company, having gone through these multiple spin-offs over these last years, is right now, at very good size with very good prospects. And I think we are going to keep these configurations for a period of time depending upon what happens and grow things and all sorts of other issues pertains. But I don’t certainly contemplate it.

So, no plans by “Spin Master” Barry Diller to spin off IAC’s Personals business, which consists mostly of Match.com. But check back in 6 months- this wheeler-dealer is always spinning.

Disclosure: The author holds no position in any stock mentioned.

Related articles
Tags: , , , , , , ,

Viking Global Investors Reveals 6% Passive Stake In TripAdvisor

by: Inelegant Investor - February 3rd, 2012  

Viking Global Investors filed a 13G yesterday, declaring a 6% passive stake in TripAdvisor(TRIP). It appears that the entire stake was purchased quite recently, as former TripAdvisor parent Expedia(EXPE) does not appear in the firm’s most recent 13F-HR, filed on November 14. As far as we can tell, Viking has never filed a 13D to take an active position in any stock, so we would not expect to see that here, especially with Barry Diller controlling 30.5% of the company through his own stake and that of Liberty Interactive Corporation. Through agreements with the company, the details of which can be seen in last month’s 13D filed by Liberty and Diller, Diller has broad rights to influence Board makeup and to stop many kinds of transactions.

Viking Global Investors is run by Andreas Halvorsen, a former member of an elite Norwegian Naval unit. Halvorsen, who has an MBA from Stanford, previously worked for Julian Robertson at Tiger Asset Management, and has been one of the most successful of the so-called “tiger cubs”.  The firm is no stranger to the online travel industry, having previously disclosed a stake in Priceline(PCLN). That position, initiated in the second quarter of last year, was reduced substantially by the third quarter filing, and we wonder if it was liquidated to purchase TripAdvisor.

Disclosure: The author holds no position in any stock mentioned

Related articles
Tags: , , , , , , , , ,

Expedia President Resigns After Just 14 Months

by: Inelegant Investor - January 13th, 2012  

Confirming reports from Geekwire, AllThingsD learned from an Expedia (EXPE) spokesperson that Company

Expedia_logo

President Scott Durchslag has resigned after 14 months on the job. The company said that CEO Dana Khosrowshahi would assume the additional role of President. Expedia CFO Michael Adler recently left after the completion of the TripAdvisor (TRIP) spinoff.

Durchslag had previously held senior positions at Skype and Motorola. Neither Durchslag nor the company has commented on the departure.

Disclosure: The author holds no position in any stock mentioned

Related articles
Tags: , , , , , ,

Newly Spun TripAdvisor’s CEO Stephen Kaufer on Founder Stories

by: Inelegant Investor - December 22nd, 2011  

TripAdvisor(TRIP) began trading as an independent company today after its spinoff from Expedia(EXPE).  Later, founder and CEO Stephen Kaufer, granted a fascinating interview to Chris Dixon of TechCrunchspeaking about his experience

Image representing TripAdvisor as depicted in ...

as founder of TripAdvisor, and about the company’s evolution and history.  The video is a must-watch for anyone considering investing in the company.

Disclosure: The author holds no position in any stock mentioned.

Related articles
Enhanced by Zemanta
Tags: , , , ,

TripAdvisor Flies Free From Expedia This Week, Joins S&P 500

by: Inelegant Investor - December 19th, 2011  

In a transaction we previously discussed here, Expedia(EXPE) will complete the spinoff of TripAdvisor(TRIP) on or around December 20.  Immediately prior to the spin, Expedia will execute a 1 for 2 reverse split, and on December 20,

Image representing TripAdvisor as depicted in ...

TripAdvisor will be added to the S&P 500, replacing Tellabs(TLAB).  Expedia, itself spun off several years ago by Barry Diller’s IAC(IAC), will remain in the index. The content-rich TripAdvisor has a faster growth rate then Expedia, and its business model is less threatened by Google’s purchase of ITA software.  At 10-12 times forward EBITDA, it seems an interesting purchase.  At the same time, if Expedia suffers a decline post-spin, its solid bookings business may be worth another look.

 

Disclosure: Author holds no position in any stock mentioned.

Related articles
Enhanced by Zemanta
Tags: , , , , , , ,

Expedia Books TripAdvisor On The Next Flight Out

by: Spin Doctor - April 7th, 2011  
Image representing TripAdvisor as depicted in ...

Image via CrunchBase

Companies with histories of spin-offs seem to have a penchant for that particular corporate transaction. Expedia (EXPE), which was spun out of IAC in 2005, announced today that they are planning on splitting the company into two separate pieces, TripAdvisor and Expedia Inc. TripAdvisor will run the current TripAdvisor Media Group, the world’s largest travel site, while Expedia will include the travel transaction brands such as Expedia,  Hotwire.com and Hotels.com.

TripAdvisor generated $486m in revenue during 2010.

The spinoff is expected to be completed during Q3 2011 in the form of a stock distribution. Interestingly, the company announced it intends to seek shareholder approval for the transaction.

The company provided no reason for the action, but it is likely that management feels that TripAdvisor’s higher-growth and higher-margin business will be more fairly valued as an independent company. TripAdvisor has largely been run as an independent company by founder Stephen Kaufer since its 2004 acquisition by Expedia, and the spinoff should have little operational impact.

Disclosure: The author has no position in any stock mentioned

 

Related articles
Enhanced by Zemanta
Tags: , , ,