According to a report from the Wall Street Journal, Expedia Group Inc, an online travel services company, is in advanced talks to sell a stake to private-equity firms Silver Lake Partners and Apollo Global Management Inc for around $1 billion.
With the news reaching the market, Expedia’s shares surged by more than 6% in extended trading. This year, the company’s shares have fallen by around 47% so far following global travel restrictions due to the coronavirus pandemic which has brought the travel and tourism industry to a grinding halt.
As part of the potential deal, Expedia is likely to give board representation to the investors.
The deal could be announced sometime later this week, said WSJ citing sources familiar with the matter at hand.
Since the deal has not been finalized, there is a possibility that the talks could collapse and that Expedia could opt to raise funds in a public-debt offering instead.
Both, Expedia and Silver Lake declined comment.
Apollo did not immediately respond to requests for comments.
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