Media mogul John Malone’s Liberty Interactive Corp. has acquired a controlling stake in TripAdvisor, the popular travel website, from Barry Diller and the Diller-von Furstenberg Family Foundation.
Liberty Interactive is spending $300 million for 4.8 million shares of TripAdvisor at $62.50 per share. Liberty will now hold nearly 60% of voting stock and more than 20% of the company’s total equity. The purchase price represents a premium of more than 60%.
After news of the change of control was announced Tuesday, TripAdvisor stock was up more than 20% from its Monday close of $38.39.
Diller resigned as chairman of TripAdvisor but he will remain on the company’s board. A new chairman will be named later.
“Ever since we acquired TripAdvisor in 2004 it’s been one of the smoothest and most trouble-free growth stories I’ve ever known,” Diller said in a statement. “During that time it grew from a start-up with $23 million in annual revenues to a $5 billion plus public company with a global brand that operates the world’s largest travel site.”
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