Tripadvisor Inc. (NASDAQ:TRIP) shares climbed 14% after the company revealed an agreement to divest TheFork, its European restaurant booking and management platform, to American Express (NYSE:AXP) in an all-cash transaction valued at $700 million.
The deal marks a significant step in Tripadvisor’s strategy to concentrate resources on expanding its Experiences business, following the company’s announcement earlier this year that it was reviewing strategic options for TheFork.
Sale Supports Focus on Experiences Segment
Management said the transaction reinforces the value embedded across Tripadvisor’s portfolio while allowing the company to sharpen its focus on higher-priority growth opportunities.
“This agreement reflects two things we believe deeply: the tangible value across Tripadvisor Group’s portfolio and our ongoing focus on the opportunity we see ahead in Experiences,” commented Matt Goldberg, CEO of Tripadvisor Group.
Tripadvisor stated that the disposal will provide greater financial flexibility as it continues to invest in its Experiences operations.
Proceeds Could Fund Buybacks, Debt Reduction and Growth Investments
The company said funds generated from the transaction could be used for a range of capital allocation initiatives, including share repurchases, debt repayment and further investment within the experiences category.
Management also noted that the sale will help maintain a strong balance sheet while supporting its capital return strategy.
TheFork Generated Solid Revenue and Earnings
During the 12 months ended in the first quarter of 2026, TheFork produced revenue of $232 million and delivered adjusted EBITDA of $28 million.
The platform has established itself as a leading online restaurant reservation and management service across several European markets.
Deal Expected to Close Before Year-End
The transaction is anticipated to be completed before the end of 2026, subject to regulatory approvals, labour consultation requirements and other customary closing conditions.
Tripadvisor expects the tax impact of the disposal to be minimal, with net proceeds likely to be broadly in line with the headline transaction value.
Companies See Scope for Future Collaboration
Both companies indicated that the transaction could create opportunities to strengthen their existing relationship.
Stephen Squeri, Chairman and CEO of American Express, said the company looks forward to expanding its partnership with Tripadvisor following the acquisition.
Goldman Sachs acted as financial adviser to Tripadvisor, while Goodwin Procter LLP and Reed Smith LLP provided legal advice to Tripadvisor and TheFork throughout the transaction process.