In 2021, Liberty Tripadvisor announced that it was exploring a potential sale of itself and Tripadvisor, forming an independent committee to vet any deals. Private equity firm Apollo Global Management expressed interest in the potential sale, but two months later, there have been no further developments, with both companies remaining quiet about any progress. Viator, Tripadvisor’s tours and activities unit, saw its president, Ben Drew, announce his departure for a new position outside the travel industry. This move has raised questions about Viator’s future prospects and leadership, potentially affecting any potential buyers of Tripadvisor.
Viator, which just broke even last year but saw a 49% revenue growth, was considered a potential spinoff candidate to unlock shareholder value. However, Tripadvisor’s new CEO, Matt Goldberg, downplayed the idea of a Viator spinoff, acknowledging the financial markets’ skittishness towards fast-growing yet unprofitable companies. The tension between Tripadvisor’s experiences strategy and whether to invest in the Tripadvisor brand or focus on Viator brand has been an ongoing issue within the company. Tripadvisor has a history of favoring its own brand over others it acquired, leading to uncertainties about Viator’s future within the company.
With Drew’s departure from Viator, Tripadvisor investors are questioning the impact it may have on the potential sale of the company. The departure may cause potential buyers to scrutinize Viator’s prospects and leadership more closely, potentially affecting any future deals involving Tripadvisor. Despite the uncertainty surrounding Viator, Tripadvisor has not made any comments about who will replace Drew at Viator or when a successor will be named. The departure of a key executive at Viator may complicate any plans for a potential sale or spinoff of the company.
The financial markets’ concerns about fast-growing yet unprofitable companies have led Tripadvisor to reconsider its plans for a Viator spinoff. Goldberg, who became CEO in July 2022, shifted the company’s focus away from the idea of spinning off Viator, although it has not been completely ruled out. The tension between Tripadvisor’s experiences strategy and whether to invest in the Tripadvisor brand or focus on Viator has been an ongoing issue within the company. Tripadvisor’s history of favoring its own brand over other acquired brands has led to uncertainties about Viator’s future within the company.
The potential sale of Tripadvisor, along with Viator’s uncertain future within the company, has raised questions about the strategic direction of the company under its new CEO. Goldberg’s focus on managing the company’s experiences strategy and the tension between Tripadvisor and Viator brands may complicate any potential deals or spinoffs involving the company. With Viator’s president leaving for a new position outside the travel industry, potential buyers are expected to closely scrutinize Viator’s prospects and leadership, potentially affecting any future deals involving Tripadvisor. Despite the uncertainties surrounding Viator, Tripadvisor has not made any comments about the potential impact of Drew’s departure on the company’s plans for a sale or spinoff.
