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

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.

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