Photo: Xhanatos via Flickr
Expedia seems to want to unlock shareholder value by splitting into two companies, and it’s apparently working already.Shares are up 14% in after-hours trading after Expedia announced plans to spin TripAdvisor off as a separate, publicly held company.
Expedia is a web-based travel agent, with brands including Expedia, Hotels.com, Hotwire, etc., while TripAdvisor is an advertising-driven media company. Expedia paid $237 million for the company in 2004, Tricia Duryee reminds us.
The spinoff is actually kind of a contrarian move for the times. Expedia is splitting up media and e-commerce while everyone else is trying to merge them. But so far, investors seem to like it.