In 2012, Expedia acquired a 61.6 percent of Trivago, a Düsseldorf, Germany-based hotel search company, for $632 million. Trivago brought in $201 million in revenue this quarter, an increase of 41 percent over this time last year, Bellevue, Wash.-based Expedia reported as part of its second quarter earnings.
Khosrowshahi said an IPO could happen by the end of the year, but he called that timeline an “ambitious” goal and cautioned that it could still fall through.
“An IPO would allow customers to value Trivago as a separate standalone company,” Khosrowshahi said. “Note that this is an IPO, not a spinoff. Expedia does not plan to sell off any of its shares in an IPO, nor is there any guarantee that an IPO will ultimately be pursued or successful.”
Expedia’s stock was down approximately 7 percent in after hours trading after Expedia missed revenue expectations in the second quarter. Expedia reported earnings of 83 cents per share on close to $2.2 billion in revenue — an increase of 32 percent over last year. Analysts expected earnings of 78 cents per share on revenue of $2.25 billion.
Expedia said its gross bookings increased 25 percent over this time last year to $18.8 billion.