Tripadvisor forms committee to explore potential deals

Tripadvisor forms committee: Tripadvisor announced on Monday the formation of a special committee tasked with evaluating proposals that could lead to potential deals, prompting a 14.2 per cent surge in its shares during extended trading.

Centerview Partners will serve as the financial adviser to the special committee, which will also delve into Liberty TripAdvisor Holdings' recent disclosure of its intention to explore potential alternatives involving both companies.

Liberty TripAdvisor, established during Tripadvisor's spin-off from Liberty Interactive, holds a 21 per cent stake in the online travel agency. 

Analysts, such as Richard Clarke from Bernstein, note that Liberty TripAdvisor faces major indebtedness, with a market capitalisation of $89 million contrasted with a debt load of $2.75 billion. 

Clarke suggests that Liberty TripAdvisor may need to utilise Tripadvisor's balance sheet to address its debt obligations.

Tripadvisor is slated to release its earnings on February 14th, with analysts projecting revenue of $374.4 million and earnings of 22 cents per share, as per LSEG data.

(With Reuters Inputs)