TripAdvisor Attracts Apollo Global's Interest for Possible Buyout

Apollo Global Management Inc APO is interested in potentially acquiring travel information company TripAdvisor Inc TRIP, a part of John Malone’s Liberty Media group. 

This exploration is based on information from sources familiar with these early-stage deliberations, who preferred to remain anonymous due to the private nature of these talks. 

While Apollo has refrained from commenting on the matter, TripAdvisor has yet to respond to inquiries regarding the potential bid, Bloomberg reports.

TripAdvisor has engaged advisers following the receipt of takeover interest, indicating a proactive approach to exploring possible acquisition proposals. 

The company’s shares have significantly risen by 25% over the last year. However, there was a slight decline of 0.3% in its share price to $26.59, valuing the company at approximately $3.7 billion in equity market value, with a total valuation of about $3.5 billion, including net debt.

The company’s primary shareholder, Liberty TripAdvisor Holdings Inc, LTRPA holds a controlling interest with 21.1% of the stock and 56.9% of the voting power, showcasing the significance of its influence over TripAdvisor.

Moreover, other notable stakeholders include BlackRock Inc BLK and Vanguard Group Inc, each possessing over 10% of TripAdvisor’s shares.

In February, TripAdvisor disclosed forming a special committee to evaluate potential proposals for a deal.

In February, TripAdvisor reported fourth-quarter revenue of $390.00 million, up by 10% year-on-year, beating the consensus of $374.44 million. Adjusted EPS of $0.38 beat the consensus of $0.22.

Investors can gain exposure to the travel sector via Amplify ETF Trust Amplify Travel Tech ETF AWAY and Defiance Hotel, Airline, And Cruise ETF CRUZ. 

Price Action: TRIP shares traded higher by 1.89% at $27.17 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Tero Vesalainen via shutterstock