NEW YORK --
IAC/InterActiveCorp intends to spin off its 14 IAC travel
businesses into a public company called Expedia.
The move will make
Expedia a pure-play travel company that will spur its growth and
get around the confusion of having the travel businesses, including
Expedia, Hotwire, Hotels.com and Classic
Custom Vacations, interfused with IACs 25 other electronic
retailing, financial services and personals businesses, officials
said.
What is now IAC will
become two public companies, IAC and Expedia. After the spin-off,
which is expected to take place in the second quarter and is
subject to a shareholder vote and other approvals, Expedia will be
a company with some $1.8 billion in annual revenue, officials
said.
Under the
transaction, IAC stock will be reclassified so that shareholders
will receive an as-yet undisclosed amount of Expedia
stock.
Dara Khosrowshahi,
who was in line to become president and CEO of IAC Travel with Erik
Blachfords departure, will become the CEO of Expedia. Barry Diller
will be chairman of Expedia and its senior executive. He will
remain as chairman and CEO of IAC, as well.
Diller said
consolidation in the travel industry will continue and taking
Expedia public will spur growth and acquisitions and enhance
competition with Cendant and Travelocity.
To contact
reporter Dennis Schaal, send e-mail to [email protected].