5 Bidders, 1 Last Week: New Details about the Tripadvisor Deal

With a bid coming across the table as late as last week, will Tripadvisor's proposed acquisition of Liberty Tripadvisor close as scheduled by June? If it gets that far, there could be all kinds of deal possibilities in Tripadvisor's future. -Dennis Schaal
Lynwood Hane · 8 days ago · 2 minutes read


Tripadvisor Bidding War: Five Intriguing Offers Uncovered

Strategic Bidder's Alluring Proposal

Just six days after Tripadvisor's announcement to acquire Liberty Tripadvisor, a strategic bidder emerged with a tempting offer. This tantalizing bid included paying cash for all shares of Tripadvisor not owned by Liberty Tripadvisor at $18-$19 per share.

Furthermore, the bidder proposed to purchase Liberty Tripadvisor's common stock for $0.3080 per share and preferred shares for $102 million. However, the Tripadvisor special committee respectfully declined this offer, deeming it not in its best interests.

Diverse Bidders Emerge

Tripadvisor received a total of five non-binding bids from a mix of strategic parties and unidentified financial sponsors. The bids showcased interest from potential suitors, including the rumored involvement of Apollo.

Behind-the-Scenes Maneuvers

The bids came as Tripadvisor pondered its strategic options, ultimately reaching an agreement to acquire Liberty Tripadvisor for $435 million.

As part of the deal, Liberty Tripadvisor's $330 million senior preferred notes owed to Certares would be paid off. Certares, a strategic investor with ties to industry heavyweights like Amex GBT and Hertz, holds a significant stake in Liberty Tripadvisor.

Expert Opinion

"The acquisition of Liberty Tripadvisor simplifies Tripadvisor's capital structure, potentially attracting financial sponsors interested in future deals." - BTIG Research

Will the Bidding Continue?

The latest bid's withdrawal and Tripadvisor's decision to not engage further have raised questions about the future of potential acquisitions.

However, BTIG Research remains optimistic, rating Tripadvisor a "buy" due to the potential for future deals once the Liberty Tripadvisor acquisition is complete.

Correction

An earlier version of this article stated six non-binding bids were received. This has been corrected to reflect the actual number of bids, which is five. Certares' proposals were not intended as acquisition bids but rather to facilitate the merger between Tripadvisor and Liberty Tripadvisor.