TripAdvisor's fate is not entirely in its own control. But recent speculation about the company's ownership seems to have been overheated.
Since TripAdvisor’s initial public offering, controlling interest has been held by Liberty Interactive. Last August, the shares with controlling interest were spun off into a company called Liberty TripAdvisor Holdings.
It holds 57% voting interest in TripAdvisor, though it only has a 22% stake in TripAdvisor's shares.
In an analyst's report, Oppenheimer wrote that it sees the spinoff as the
Earlier this month, Bloomberg Business pointed out that a half-year waiting period is typically required to enjoy a tax-free exit on any merger or sale. As of this month, that waiting period has passed.
Bloomberg Business speculated that the shares might be offered to another party besides TripAdvisor, such as Priceline Group.
But that outcome doesn't seem likely, at least according to remarks made today by the chief executive of the holding company, Greg Maffei, who, importantly, has also been chairman of TripAdvisor itself for a few years.
Maffei spoke at the Morgan Stanley Technology, Media & Telecom Conference. He was asked about why the spinoff took place, and what will happen next.
That said, no one knows whether Liberty TripAdvisor Holdings will sell the controlling interest to either TripAdvisor or to another bidder. The market currently values the holding company at $2.46 billion.
Manish Hemrajani, executive director of Oppenheimer, the investment bank, says his best guess is that he doesn't expect a resolution until next year at the earliest. In an interview, Hemrajani said:
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