Shares of Expedia (NASDAQ:EXPE) have risen over 10 percent this morning. Expedia shares have climbed upward $2.45 to $24.85 this morning as nearly 13 million shares have already been traded. This is double the average daily number of Expedia shares traded.
This mornings rise of Expedia shares is due in large part to a tax-free spin-off of TripAdvisor. Expedia announced the spin-off would occur one of two ways either with TripAdvisor shares being issued to expedia share holders, or by reclassifying Expedia’s own shares. The deal is expected to be completed this third quarter. After the spinoff, Expedia says it will continue with its travel brands including Expedia.com, Hotels.com, Hotwire.com, and Carrentals.com.
Anaylst have said that the spin-off is a positive catalyst for Expedia shareholders, stating TripAdvisor is a high-margin, high-growth division of Expedia. and some have maintained a “BUY” rating and a $29 Target price.
About Expedia Inc.
Expedia Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. It provides travel products and services to leisure and corporate travelers, offline retail travel agents, and travel service providers through a portfolio of brands, including Expedia.com, hotels.com, Hotwire.com, the TripAdvisor Media Network, Expedia Affiliate Network, Classic Vacations, Expedia Local Expert, Expedia CruiseShipCenters, Egenciatm, eLong, Inc., and Venere Net SpA.