5 years after TripAdvisor, Trivago is going public too
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According to media reports, Expedia is reportedly looking to make an IPO for Trivago, one of its subsidiaries.
Does the Trivago IPO have the potential to reward investors as richly as the 2011 TripAdvisor spinoff?
According to a report by Reuters, Expedia has already set in motion the process for an initial public offering for Trivago. The IPO, which according to a source, could be valued at more than $1 billion, is set to take place in late 2016 or early 2017.
Expedia paid 477 million euros in 2012 for a 62% stake in Trivago, with the rest of the company remaining in the hands of its three German founders.
Although Expedia is unwilling to let go its majority stake, investors are naturally drawing parallels between the Trivago IPO and the TripAdvisor spinoff in 2011. The TripAdvisor spinoff was simply sensational, with the spun-off unit sporting a market cap 40% bigger than the parent company just 20 months after the event.
Trivago operates quite differently from the average OTA, with its revenue model being remarkably similar to TripAdvisor's at the time of its spinoff.