American Express Buys TheFork from Tripadvisor for $700M Cash
Tripadvisor Inc has agreed to sell its European restaurant reservations platform TheFork to American Express for $700 million in cash. Jefferies says the move simplifies Tripadvisor's structure but does not fully offset long-term pressure in its core business.
Key Numbers
Tripadvisor Inc (NASDAQ:TRIP) has agreed to sell its European restaurant reservations platform TheFork to American Express (NYSE:AXP) for $700 million in cash, a move that Jefferies says simplifies the company’s structure but does not fully offset longer-term pressure in its core business.
Deal Details
| Item | Detail |
|---|---|
| Value | $700 million cash |
| Buyer | American Express (AXP) |
| Seller | Tripadvisor (TRIP) |
| Asset | TheFork (European restaurant booking platform) |
| Expected Close | Not yet announced |
Rationale
For American Express, the acquisition expands its travel and dining experiences offerings for cardholders. For Tripadvisor, it provides cash and allows focus on its core travel business.
Regulatory Challenges
The deal is expected to undergo regulatory review in European markets where TheFork operates. No timeline for approvals has been provided.
Impact on Stocks
Jefferies views the deal as accretive to Tripadvisor's valuation but not a positive for its outlook, as core business pressures remain. For American Express, the acquisition could strengthen its position in travel and customer experiences.
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