DA Davidson analyst Tom White keeps a Neutral rating on TripAdvisor (TRIP) after the company announced plans to acquire Liberty TripAdvisor Holdings (LTRPA) for a total merger consideration of $435M. The deal is effectively a buyback of 19% of TripAdvisor’s common stock “at a reasonable price,” the analyst tells investors in a research note. The firm believes acquisition simplifies TripAdvisor’s corporate structure -and will align the voting power and economic ownership for all shareholders. TripAdvisor management should have more strategic flexibility as well as one less distraction as the company tries to turnaround its legacy branded Tripadvisor.com business and maximize value at Viator, contends DA Davidson. The firm also sees potential expansion of TripAdvisor’s investor base and the possibility of additional index inclusion.
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Read More on TRIP:
- TripAdvisor deal to buy Liberty TripAdvisor ‘effectively a buyback,’ says BTIG
- TripAdvisor acquires Liberty TripAdvisor with transaction value of $435M
- TripAdvisor jumps 11% to $14.38 following deal to buy Liberty TripAdvisor
- Tripadvisor Announces Strategic Merger with Liberty Holdings
- TripAdvisor, Liberty TripAdvisor announce planned merger
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
