Expedia, Inc. to Repurchase Up to $3.5 Billion of Stock in Tender Offer

Expedia, Inc. (Nasdaq: EXPE) announced plans to repurchase up to 116,666,665 shares of its common stock through a Dutch Auction at a price per share not less than $27.50 and not greater than $30.00.

The 116,666,665 shares subject to the tender offer represent approximately 42% of the number of shares of common stock currently outstanding and approximately 38% of the total number of shares of common stock and Class B common stock currently outstanding. Barry Diller, Expedia’s Chairman and Senior Executive, cited confidence in the value and long term future of Expedia as reasons for the action.

Expedia, Inc. is the world’s leading online travel company, empowering business and leisure travelers with the tools and information they need to easily research, plan, book, and experience travel.

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PAYOUT YIELD ANALYSIS

With 303 million shares outstanding, the repurchase program should return $10.82 per share.  There is no dividend, so the Total Payout is projected to be $10.82.  At a $29 share price, the Total Payout Yield would be 37% if the plan is completed over the next 4 quarters.

- Payout Yield Staff

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