Big Buyback of Shares Is Set by Expedia
June 20, 2007：The online travel company Expedia said yesterday that it would buy back more than a third of its outstanding shares, consolidating control by its chairman, Barry Diller.
Mr. Diller, who is also chairman and chief executive of Expedia’s former parent, IAC/InterActiveCorp, would control 41 percent of Expedia stock after the buyback. His already dominant voting power will be increased further through his control of a separate class of shares.
Expedia said its directors and executives and its major shareholder, the Liberty Media Corporation, would not sell stock under the plan to repurchase 116.7 million shares at $27.50 to $30 each.
Without elaborating on the reasons for the buyback or the source of the money to be used, Mr. Diller said the move reflected the board’s confidence in the company’s future.
Expedia representatives declined to comment beyond the statement. A spokeswoman said more details would come in a filing with the Securities and Exchange Commission.
In trading yesterday, Expedia rose $3.64, or more than 14 percent, to $29.14.