There is a high possibility that the two companies that describe themselves as the best travel websites might approach a merger. Tripadvisor Inc (NASDAQ:TRIP) and Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA) are both reputable in the travel industry but could soon be operating as one I the projection is true.
Trip advisor is expected to reveal its quarterly income report to its shareholders on Wednesday while liberty trip advisor will do the same a few days after that. The meetings are expected to touch on the merger issue as they contemplate future performance for both companies.
Liberty Trip Advisor controls a 22% market share and also has a 57% voting right in Trip Advisor. Therefore, Liberty Trip Advisor’s value is closely pegged to it counterpart. Redundant
John Malone holds the leadership position in L-trip. His company boasts of important contracts with major companies such as Englewood. The company’s dealings with the Securities and Exchange Commission plus the Maffei public reports suggest that the company had an exit strategy during its formation.
Trip Advisor, on the other hand, has been rated as one of the best potentially lucrative company to enter into a contract with. Potentially interested travel firms include Priceline Group Inc (NASDAQ:PCLN) or even major online giants such as Google Inc (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT).
Robert Routh from FBN Securities suggested that the two travel companies will most likely unite as hinted by L-trip’s CEO, Greg Maffei. He went on further to suggest that the deal would most likely be a stock agreement involving an offer for Trip Advisor to buy shares from Liberty Trip Advisor. Greg also projected that in case Microsoft, Google or Priceline place a buyout offer on the table, the company will most likely consider taking the deal.
During an FBR Capital Markets Investor meeting that took place late last year, one of the analysts asked Maffei if his company would consider restructuring in an effort to make way for a merger. Maffei gave a positive response, citing that both scenarios are indeed possible.
