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Expedia to be split into two companies

Expedia's board has given preliminarily approval to a plan to separate Expedia into two publicly traded companies. The Expedia brand will continue to include the domestic and international operations of the company’s travel transaction brands, while TripAdvisor will be split off and include the domestic and international operations associated with the TripAdvisor Media Group, which includes its flagship brand as well as 18 other travel media and advertising brands. Expedia shares were down 0.4%.

Expedia anticipates that the transaction will take the form of a distribution of stock of TripAdvisor to Expedia stockholders or a reclassification of Expedia stock, with the holders of Expedia stock receiving a proportionate amount of TripAdvisor stock. It is expected that Expedia’s dual-class equity capital structure and the governance arrangements between Barry Diller and Liberty Media will be mirrored at TripAdvisor following the transaction. The transaction is subject to a number of conditions including final approval by Expedia’s board. It is expected that Expedia will seek stockholder approval for the transaction. The proposed spin-off is expected to be completed in 3Q2011

Selected aviation suppliers share price movements (% change): 07-Apr-2011