TripAdvisor, Parent’s Shares Surge Following Disclosure Of Third-Party Takeover Interest: Retail Mood Brightens

TripAdvisor, Inc. (TRIP) shares climbed on Thursday after its holding company Liberty TripAdvisor Holdings, Inc. (LTRPA) disclosed an acquisition offer from a third party for both companies.

In mid-December, TripAdvisor and its parent struck a merger arrangement, allowing TripAdvisor to acquire Liberty TripAdvisor for about $435 million. The companies said the transaction, scheduled to close in the second half of 2025, aims to simplify TripAdvisor’s capital structure and reduce its outstanding shares.

In a proxy statement filed with the SEC regarding the merger on Thursday, Liberty TripAdvisor called upon its shareholders to approve the proposed transaction in a special meeting of shareholders to be held virtually on a yet-to-be-determined date.

Liberty TripAdvisor also revealed that on Oct. 18, TripAdvisor received a non-binding indication of interest from a strategic bidder. Following back-and-forth exchanges, the strategic investor submitted a non-binding indication of interest to acquire both  TripAdvisor and Liberty TripAdvisor, subject to diligence and other customary conditions. 

The terms of the proposal called for the acquisition of:

• all outstanding shares of Tripadvisor not held by Liberty TripAdvisor for $18 to $19 per share in cash
• all outstanding shares of Liberty TripAdvisor common stock for $0.3080 per share in cash
•  all outstanding shares of Liberty TripAdvisor preferred stock for $102 million in the aggregate

A TripAdvisor special committee that investigated the merits of the third-party’s offer deemed that the proposal continued to be inadequate and determined not to pursue it further. 

On Stocktwits, sentiment TripAdvisor stock turned to ‘extremely bullish’ (89/100) from the ‘neutral’ mood that prevailed a day ago. Retail chatter grew louder, spiking message volume to ‘extremely high’ levels. 

TRIP sentiment and message volume January 23, 2025, as of 2:44 pm ET | Source: Stocktwits

The Liberty TripAdvisor stream on the platform showed ‘extremely bullish’ sentiment among retail investors and ‘extremely high’ message volume.

LTRPA sentiment and message volume January 23, 2025, as of 2:44 pm ET | Source: Stocktwits

In late-afternoon trading, TripAdvisor stock jumped about 11% to $17.48 and its holding company’s stock added about 3.35% to $0.2620.

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