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Expedia (EXPE) to List Its Trivago Hotel Search Platform

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Expedia Inc. (EXPE - Free Report) is reportedly gearing up for an initial public offering (IPO) to list its Trivago hotel search platform.

Reuters reported that the IPO could value Trivago at more than $1 billion and is likely to take place in the U.S. later this year or early next year. Bank pitches for IPO rules will start next week in New York.

Chief Executive Dara Khosrowshahi had informed investors in July that Expedia management and the Trivago founding team were preparing for a stock market listing of Trivago. The CEO also confirmed that there are no plans for a Trivago spin-off.

About Expedia

Expedia is one of the world's leading travel services companies. It provides wholesale travel to offline retail travel agents. Expedia's main businesses and brands include Expedia.com, Hotels.com, Hotwire, Expedia Corporate Travel, Trip Advisor and Classic Custom Vacations.

Expedia's companies also operate internationally with sites in Canada, the U.K., Germany, France, Italy, Netherlands and China, through its investment in eLong.

About Trivago

Expedia will retain two-third of Trivago’s shares that it currently holds. The remaining one third, held by Trivago owners, will be sold through the IPO listing.

Founded in 2005 in Duesseldorf, Germany, Trivago is one of the leading hotel search platforms in the world. The company is known as one of the most successful start-ups in Germany.

In 2012, Expedia acquired 62% of Trivago’s stake for $531 million. Since then, it has been growing significantly and has expanded to Brazil, Japan and the Middle East. In 2015, Trivago contributed 9.3% to Expedia’s total revenue.

Zacks Rank and Stocks to Consider

Currently, Expedia has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. , Facebook, Inc. and LinkedIn Corporation , each sporting a Zacks Rank #1 (Strong Buy).

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