Investing.com -- Shares of Tripadvisor (NASDAQ:TRIP) surged by 8% mid-day Thursday after an SEC filing indicating a potential higher bidder was recently presented versus the current deal with Liberty TripAdvisor Holdings (OTC:LTRPA).
The filing revealed on January 17, 2025, Tripadvisor's special committee received a non-binding indication of interest from Party 7. The proposal included acquiring Tripadvisor shares not held by Liberty TripAdvisor for $18.00 to $19.00 per share in cash, Liberty TripAdvisor common stock at $0.3080 per share, and all outstanding preferred stock for $102 million in total. The Tripadvisor special committee considered the proposal but ultimately found it inadequate and decided not to pursue it further. Despite this, the market responded positively to the news of a potential higher offer.
The Liberty TripAdvisor Board, on January 21, 2025, instructed its management to seek waivers from Tripadvisor to allow discussions with Party 7 regarding a possible acquisition of Liberty TripAdvisor only. The Tripadvisor special committee later communicated that it was not in the best interests of Tripadvisor and its shareholders to engage with Party 7 or grant the requested waivers.
The company's decision not to pursue Party 7's proposal reflects its commitment to the current deal with Liberty TripAdvisor Holdings, despite the higher bid. Investors reacted favorably to the possibility of a competitive bidding scenario, which is often seen as potentially beneficial to shareholders.
As the situation develops, Tripadvisor's stock movement indicates investor optimism about the company's value and the ongoing strategic discussions. However, it remains to be seen how these potential transactions will unfold and what impact they will ultimately have on Tripadvisor's market position and shareholder value.
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