Shares of Tripadvisor Inc. (NASDAQ:TRIP) experienced a significant drop, tumbling 38% on Wednesday, marking what could be their most substantial single-day decline to date. This steep fall came after the online travel company announced it would not consider a sale at this time, despite previous interest from potential buyers.
In February, Tripadvisor revealed that its controlling shareholder, Liberty TripAdvisor Holdings Inc, had received inquiries from at least one party interested in purchasing its controlling stake in the company. Despite the interest, a special committee established to evaluate these options has concluded that a sale does not align with the best interests of Tripadvisor at the present.
During a post-earnings call, CEO Matthew Goldberg emphasized that while the special committee remains open to evaluating future proposals, there is no certainty that any transaction will materialize.
Furthermore, Tripadvisor reported a significant financial downturn in its first quarter, posting a loss of 43 cents per share. This result was unexpected, particularly as analysts, citing LSEG data, had projected a modest profit of 2 cents per share.
Liberty TripAdvisor Holdings Inc., a part of the portfolio of media tycoon John Malone, holds a 56% stake in Tripadvisor. Liberty Media’s CEO, Greg Maffei, who also serves as Tripadvisor’s chairman, controls the holdings company.
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