When travel king Expedia (NASDAQ: EXPE) announced its second-quarter earnings results on July 28, it wasn't its 25% jump in gross bookings to $3.8 billion, the HomeAway unit's 36% increase in revenue to $172 million, nor its total revenue pop of 33% to $2.2 billion that provided the impetus for the 2% stock price improvement that immediately followed.
No, what caught investors' attention was a line item in the earnings release -- and subsequent a reference on management's conference call -- that it and, "the founders of Trivago have agreed to explore the feasibility of an IPO of Trivago shares." Expedia went on to mention that the hotel booking site's sales had skyrocketed 41% in the quarter, generating $201 million.
According to the proverbial "sources familiar with the matter," Expedia has reportedly taken its first steps to get the Trivago IPO ball rolling. The company is scheduled to meet with several banks -- possibly as early as this week -- to select underwriters and IPO specialists to assist with the process.
Expedia said it wasn't planning on selling any of its Trivago shares, though its founders own approximately one-third of the company and, as per the scuttlebutt, intend to sell their respective stakes. The same sources that broke the news Expedia would entertain offers from banks to facilitate an IPO said its valuation could exceed $1 billion.
By: Investopedia.
Photo: Skift.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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