Expedia Shares Jump As Leadership Resigns
The news resulted in the stocks of the travel company to increase in value. Expedia’s shares increased up to 7.6% following the announcement. Share prices for Expedia have been lagging due to a disappointing third quarter. The company claims that lower visibility in google search results have hurt business.
The resignation of two executives comes because of a disagreement between the board and company leadership. Executives wanted to reorganize Expedia, however the board felt that the proposal put forward did not have short term profitability and pivoted away from strengths that the company currently has.
"The Board disagreed with that outlook, as well as the departing leadership's vision for growth, strongly believing the Company can accelerate growth in 2020," Chairman Barry Diller said. "That divergence necessitated a change in management."
Diller and Expedia’s Vice Chairman, Peter Kern, will fill in as needed while Eric Hart will take on the role of acting CFO.
Additionally, Expedia expanded its share-buyback program. It had previously agreed to buyback 9 million shares but have added 20 million more shares to their buyback threshold.