Expedia Announces Spin-Off of TripAdvisor at Shareholder Meeting

At Expedia Inc.’s (NASDAQ:EXPE) annual shareholder meeting on Tuesday, the company announced that its stockholders overwhelmingly approved a spin-off of TripAdvisor, Inc. along with a number of other proposals.

The company also authorized a one-for-two reverse stock split, the conversion of the outstanding shares of Expedia Series A preferred stock into the right to receive a fixed amount of cash pursuant to a merger and various amendments to Expedia’s certificate of incorporation, according to a press release.

From the approvals, which had more than a majority of the non-management shares, the company sees the transactions closing around Dec. 20, along with the Expedia stock split before Trip Advisor’s spin-off.

Once the spin-off is completed, Expedia will not have any ownership interest in TripAdvisor, as it will turn into an independent publicly traded company.

In addition, the proposals for re-election of Expedia board of director members, the ratification of the appointment of Expedia’s independent auditor and the advisory vote on executive compensation was also approved with stockholders recommending three years for advisory votes on executive salaries.

Here’s how internet travel site stocks are trading now:

Expedia Inc. (NASDAQ:EXPE): EXPE shares recently traded at $28.07, down $1.14, or 3.9%. They have traded in a 52-week range of $19.61 to $32.89. Volume today was 3,420,516 shares versus a 3-month average volume of 4,658,810 shares. The company’s trailing P/E is 16.66, while trailing earnings are $1.69 per share. Get the most recent company news and stock data here >>

Ctrip.com International Ltd. (NASDAQ:CTRP): CTRP shares recently traded at $23.73, down $1.22, or 4.89%. They have traded in a 52-week range of $23.56 to $50.57. Volume today was 4,099,558 shares versus a 3-month average volume of 3,067,620 shares. The company’s trailing P/E is 20.32, while trailing earnings are $1.17 per share. Get the most recent company news and stock data here >>

priceline.com Incorporated (NASDAQ:PCLN): PCLN shares recently traded at $480.83, down $3.46, or 0.71%. They have traded in a 52-week range of $392.90 to $561.88. Volume today was 600,651 shares versus a 3-month average volume of 1,345,310 shares. The company’s trailing P/E is 25.47, while trailing earnings are $18.88 per share. Get the most recent company news and stock data here >>

Orbitz Worldwide, Inc. (NYSE:OWW): OWW shares recently traded at $4.06, down $0.17, or 4.02%. They have traded in a 52-week range of $1.57 to $6.50. Volume today was 255,564 shares versus a 3-month average volume of 285,720 shares. The company’s trailing earnings are $-0.66 per share. Get the most recent company news and stock data here >>

More from The Cheat Sheet