Latest news with #LibertyTripAdvisor
Forbes
a day ago
- Business
- Forbes
Buy, Sell, Or Hold Tripadvisor Stock?
CHINA - 2025/03/07: In this photo illustration, A woman browses Tripadvisor website on her laptop. ... More (Photo Illustration by Serene Lee/SOPA Images/LightRocket via Getty Images) Tripadvisor stock (NASDAQ: TRIP) surged 8% on July 2 — significantly surpassing the S&P 500's modest 0.47% increase — after activist investor Starboard Value revealed a stake exceeding 9% in the online travel company. The approximately $160 million investment caused shares to climb another 7% in after-hours trading on Wednesday. The timing of Starboard's action is significant. Tripadvisor has faced challenges lately, with shares declining roughly 15% over the past year, and the company has been considering strategic options since early 2024. This process commenced shortly after Tripadvisor entered into a $435 million agreement to acquire its majority stakeholder, Liberty TripAdvisor, last December. In January, the firm also revealed that it received a non-binding proposal from a strategic bidder. Despite the activist enthusiasm, Tripadvisor's fundamentals paint a more serious picture. Nevertheless, those looking for growth with less volatility than individual stocks may want to look into the High Quality portfolio, which has outperformed the S&P 500 with returns exceeding 91% since its inception. Separately, refer to Seagate Stock to $85? Valuation: Not a Bargain At first sight, Tripadvisor may seem attractively priced, exhibiting a price-to-sales (P/S) ratio of 1.0 compared to the S&P 500's 3.1. However, a more detailed examination uncovers a significantly less appealing valuation. The company trades at a price-to-free cash flow (P/FCF) ratio of 61.3, nearly three times the S&P 500's 20.9, and a price-to-earnings (P/E) ratio of 41.1, well above the benchmark's 26.9. These high multiples imply that investors are paying a substantial premium for a company exhibiting lackluster financial results. Additionally, see our analysis on Tripadvisor's valuation. Revenue Stalled and Margins Are Weak Tripadvisor's top-line growth has slowed, with revenue rising only 1.4% in the past 12 months and just 0.8% year-over-year in the most recent quarter. This deceleration raises questions about the company's capability to sustain future growth. Concurrently, Tripadvisor is facing difficulties in converting sales to profits. Its operating margin stands at a modest 6.5% for the last four quarters, while its free cash flow margin is merely 5.8%, well below the S&P 500's 14.9%. The company's net margin is even more concerning at 2.9%, compared to 11.6% for the overall market. These disappointing profitability indicators highlight Tripadvisor's struggles in providing shareholder value. Financial Health: Mixed Picture Tripadvisor's balance sheet showcases a mixed scenario. The company has $1.3 billion in debt, leading to a debt-to-equity ratio of 68.9%—considerably higher than the S&P 500 average of 19.4%. However, this leverage is somewhat balanced by a strong cash position, with $1.2 billion in cash and equivalents representing a substantial 42% of total assets. While the elevated debt level raises some concerns, Tripadvisor's solid liquidity offers a meaningful safety net. Resilience in Downturns: Troubling History Historically, Tripadvisor stock has underperformed during market downturns. In the 2022 inflation-driven selloff, TRIP fell 60.5%, more than double the S&P 500's 25.4% decline. Similarly, during the COVID-19 pandemic, the stock declined 53.9%, again trailing the broader market. Notably, Tripadvisor has yet to recover its pre-pandemic heights and currently trades around $15—less than a quarter of its 2021 peak—highlighting its limited resilience in volatile conditions. Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks performed during and after the past six market crashes. The Bottom Line Tripadvisor falls short in the areas that matter most. While its growth has been reasonable, that momentum is clearly diminishing. Profitability remains extremely weak, and although the company's financial situation is relatively stable, it is far from indestructible. Its performance in economic downturns has been exceedingly poor, and the current valuation appears disconnected from its fundamental aspects. Even with renewed interest from activist investor Starboard Value, Tripadvisor presents a weak case for long-term investors. Its high valuation, alongside sluggish growth, narrow margins, and a history of underperformance in turbulent markets, renders it an undesirable investment. While it would be advisable to steer clear of TRIP stock for the time being, you might consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stock benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to yield strong returns for investors. Why is that? The quarterly rebalanced mixture of large-, mid-, and small-cap RV Portfolio stocks has offered a responsive strategy to capitalize on favorable market conditions while limiting losses when markets decline, as explained in RV Portfolio performance metrics.
Hospitality Net
08-05-2025
- Business
- Hospitality Net
Tripadvisor Announces Closing of Merger with Liberty TripAdvisor and Finalizes Conversion to a Nevada Corporation
NEEDHAM, Mass. - Tripadvisor, Inc. (NASDAQ: TRIP) ("Tripadvisor") announced the closing of its previously announced plan of merger with Liberty TripAdvisor Holdings, Inc. ("Liberty TripAdvisor"), pursuant to which Tripadvisor acquired Liberty TripAdvisor and the Tripadvisor shares held by Liberty TripAdvisor (the "Merger"). In connection with the Merger, (i) the shares of Liberty TripAdvisor Series A Common Stock and Series B Common Stock issued and outstanding were immediately converted into the right to receive $0.2567 per share in cash (without interest), totaling approximately $20 million in the aggregate; (ii) all shares of Liberty TripAdvisor's 8% Series A Cumulative Redeemable Preferred Stock issued and outstanding immediately prior to the effective time of the Merger were converted into the right to receive, in the aggregate, approximately $42.5 million in cash, without interest, and 3,037,959 validly issued, fully paid and non-assessable shares of Tripadvisor common stock; and (iii) Liberty TripAdvisor's 0.50% Exchangeable Senior Debentures (the "Exchangeable Debentures") of approximately $326 million were repaid in accordance with their terms, with the remaining approximately $4 million to be redeemed within approximately 30 days post-close. The aggregate transaction value was approximately $430 million, based on the April 28, 2025 closing price of Tripadvisor shares of $12.82. At the time of close, Liberty TripAdvisor owned 14,023,684 shares of Tripadvisor common stock (16,445,894 shares of Tripadvisor common stock originally held at the time of entry into the agreement and plan of merger governing the Merger, less 2,422,210 shares that were sold as part of Liberty TripAdvisor's variable prepaid forward contract) and 12,799,999 shares of Tripadvisor Class B common stock. Upon consummation of the Merger, Tripadvisor retired the shares of Tripadvisor common stock and Tripadvisor Class B common stock held by Liberty TripAdvisor, and issued 3,037,959 shares of its common stock to the Liberty TripAdvisor preferred shareholder, resulting in a net reduction of its share count outstanding of approximately 23.8 million shares. The transaction resulted in the simplification of Tripadvisor's capital structure into a single class of shares outstanding with no controlling stockholder. Separately, effective April 29, 2025, Tripadvisor finalized its redomestication by conversion from the State of Delaware to the State of Nevada, as approved by Tripadvisor stockholders in June 2023. About Tripadvisor Tripadvisor, the world's largest travel guidance platform*, helps millions of people each month** become better travelers, from planning to booking to taking a trip. Travelers across the globe use Tripadvisor's website and app to discover where to stay, what to do and where to eat based on guidance from those who have been there before. With more than a billion reviews and contributions, travelers turn to Tripadvisor to find deals on accommodations, book experiences, reserve tables at delicious restaurants and discover great places nearby. Tripadvisor LLC is a wholly owned subsidiary of Tripadvisor, Inc. (Nasdaq: TRIP). The subsidiaries of Tripadvisor, Inc. own and operate a portfolio of travel media brands and businesses, operating under various websites and apps.
Associated Press
24-03-2025
- Business
- Associated Press
Liberty TripAdvisor Holdings, Inc. Announces Virtual Special Meeting of Stockholders
Liberty TripAdvisor Holdings, Inc. (OTCMKTS: LTRPA, LTRPB) ('Liberty TripAdvisor') will hold a virtual special meeting of its holders of Series A common stock ('LTRPA') and Series B common stock ('LTRPB') on Thursday, April 24, 2025 at 10:15 a.m. M.T. At the special meeting, such stockholders will be asked to consider and vote on (i) a proposal to approve the adoption of the Agreement and Plan of Merger, dated December 18, 2024 (the 'Merger Agreement'), by and among Tripadvisor, Inc. ('Tripadvisor'), Liberty TripAdvisor and Telluride Merger Sub Corp., an indirect wholly owned subsidiary of Tripadvisor ('Merger Sub'), pursuant to which, among other things, Merger Sub will merge with and into Liberty TripAdvisor (the 'Merger'), with Liberty TripAdvisor surviving the Merger and becoming an indirect wholly owned subsidiary of Tripadvisor, and (ii) a proposal to approve the adoption of an amendment to the Restated Certificate of Incorporation of Liberty TripAdvisor, dated August 27, 2014, which amends certain provisions of the Certificate of Designations of Liberty TripAdvisor 8% Series A Cumulative Redeemable Preferred Stock, dated March 15, 2020, as amended. In connection with the Merger, (a) the shares of LTRPA and LTRPB issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive $0.2567 per share in cash (without interest), totaling approximately $20 million in the aggregate and (b) all of the shares of Liberty TripAdvisor's 8% Series A Cumulative Redeemable Preferred Stock issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive, in the aggregate, $42,471,000 in cash, without interest, and 3,037,959 validly issued, fully paid and non-assessable shares of Tripadvisor common stock. Information regarding the transactions contemplated by the Merger Agreement (the 'Transactions') and matters on which holders of LTRPA and LTRPB are being asked to vote is available in the definitive proxy materials filed by Liberty TripAdvisor with respect to the special meeting. Additional Special Meeting Details The special meeting will be held via the Internet and will be a completely virtual meeting of holders of LTRPA and LTRPB. Such stockholders of record as of the record date for the special meeting will be able to attend the meeting, submit questions and vote their shares electronically during the meeting via the Internet by visiting The record date for the special meeting is 5:00 p.m., New York City time, on March 21, 2025. Stockholders will need the 16-digit control number that is printed in the box marked by the arrow on the stockholder's proxy card for the special meeting to enter the virtual special meeting website. A technical support number will become available at the virtual meeting link 10 minutes prior to the scheduled meeting time. In addition, access to the special meeting will be available on the Liberty TripAdvisor website. All interested persons should visit to access the webcast. An archive of the webcast will also be available on this website after appropriate filings have been made with the SEC. Forward-Looking Statements This communication includes certain forward-looking statements, including certain statements relating to the Transactions and their proposed timing and other matters related to the Transactions. All statements other than statements of historical fact are 'forward-looking statements' for purposes of federal and state securities laws. These forward-looking statements generally can be identified by phrases such as 'possible,' 'potential,' 'intends' or 'expects' or other words or phrases of similar import or future or conditional verbs such as 'will,' 'may,' 'might,' 'should,' 'would,' 'could,' or similar variations. These forward-looking statements involve many risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied by such statements, including, without limitation, the satisfaction of conditions to the Transactions. These forward-looking statements speak only as of the date of this communication, and Liberty TripAdvisor expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty TripAdvisor's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty TripAdvisor, including its definitive proxy statement materials for the special meeting, amendment no.2 to its Schedule 13E-3 transaction statement and its most recent Form 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports Liberty TripAdvisor subsequently files with the SEC, for additional information about Liberty TripAdvisor and about the risks and uncertainties related to Liberty TripAdvisor's business which may affect the statements made in this communication. Additional Information In connection with the Transactions, Liberty TripAdvisor filed with the SEC the relevant materials, including a proxy statement on Schedule 14A (the 'Proxy Statement') in preliminary and definitive form, the definitive version of which will be sent or provided to Liberty TripAdvisor's stockholders, and a Schedule 13E-3 transaction statement. Liberty TripAdvisor may also file other documents with the SEC regarding the Transactions. Promptly after filing its definitive Proxy Statement with the SEC, Liberty TripAdvisor commenced the mailing of, and will otherwise provide, the definitive Proxy Statement and a proxy card to each stockholder of Liberty TripAdvisor entitled to vote at the meeting relating to the Transactions. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND THE SCHEDULE 13E-3 TRANSACTION STATEMENT, TOGETHER WITH ALL RELEVANT SEC FILINGS REGARDING THE PROPOSED TRANSACTION, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED (INCLUDING AS EXHIBITS THEREWITH) WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE TRANSACTIONS BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTIONS AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement, the Schedule 13E-3 transaction statement and other documents that are filed or will be filed with the SEC by Liberty TripAdvisor through the website maintained by the SEC at or Liberty TripAdvisor's investor relations website at Participants in a Solicitation Liberty TripAdvisor anticipates that the following individuals will be participants (the 'Liberty TripAdvisor Participants') in the solicitation of proxies from holders of LTRPA and LTRPB in connection with the proposed Transactions: Gregory B. Maffei, Chairman of the Liberty TripAdvisor Board and Liberty TripAdvisor's President and Chief Executive Officer, Christy Haubegger, Michael J. Malone, Chris Mueller, Larry E. Romrell, Albert E. Rosenthaler and J. David Wargo, all of whom are members of the board of directors of Liberty TripAdvisor, Brian J. Wendling, Liberty TripAdvisor's Senior Vice President and Chief Financial Officer, and Renee L. Wilm, Liberty TripAdvisor's Chief Legal Officer and Chief Administrative Officer. Information regarding the Liberty TripAdvisor Participants, including a description of their direct or indirect interests, by security holdings or otherwise, and Liberty TripAdvisor's transactions with related persons can be found under the captions 'Beneficial Owners and Management—Security Ownership of Management' and 'Certain Relationships and Related Party Transactions' contained in Liberty TripAdvisor's definitive Proxy Statement and is available at: To the extent that certain Liberty TripAdvisor Participants or their affiliates have acquired or disposed of security holdings since the 'as of' date disclosed in Liberty TripAdvisor's definitive Proxy Statement, such transactions have been or will be reflected on Statements of Change in Ownership on Form 4 or amendments to beneficial ownership reports on Schedules 13D filed with the SEC, which are available at: Additional information regarding the Liberty TripAdvisor Participants in the proxy solicitation and a description of their interests will be contained in the proxy statement for Liberty TripAdvisor's special meeting of stockholders and other relevant materials to be filed with the SEC in respect of the contemplated transactions when they become available. These documents can be obtained free of charge from the sources indicated above. About Liberty TripAdvisor Holdings, Inc. Liberty TripAdvisor Holdings, Inc. (OTCMKTS: LTRPA, LTRPB) consists of its subsidiary Tripadvisor. Tripadvisor operates as a family of brands that connects people to experiences worth sharing, and aims to be the world's most trusted source for travel and experiences. Tripadvisor leverages its brands, technology, and capabilities to connect its global audience with partners through rich content, travel guidance, and two-sided marketplaces for experiences, accommodations, restaurants, and other travel categories. SOURCE: Liberty TripAdvisor Holdings, Inc. Copyright Business Wire 2025. PUB: 03/24/2025 08:15 AM/DISC: 03/24/2025 08:15 AM
