Expedia Inc. plans to spin off its TripAdvisor Inc. unit as a publicly held business around Dec. 20, letting investors bet on its fast-growing travel-recommendation service.
The TripAdvisor spinoff, first announced in April, was “overwhelmingly approved” by Expedia stockholders at its annual meeting, the Bellevue, Washington-based company said today in a statement. As part of the move, Expedia will consolidate its shares with a reverse 1-for-2 stock split.
After the TripAdvisor deal, all of its outstanding stock will be held by Expedia shareholders. TripAdvisor will be listed on the Nasdaq Stock Market under the ticker symbol TRIP and headquartered in Newton, Massachusetts.
The move will let shareholders benefit from the success of TripAdvisor, a smaller business that is outpacing Expedia’s main operations. In the third quarter, sales at TripAdvisor climbed 30 percent to $180.8 million, double the growth rate of Expedia, which recorded revenue of $1.14 billion. TripAdvisor includes 19 travel and advertising brands.
Expedia shares fell less than 1 percent today to $28.81. The stock has gained 15 percent this year.