* Liberty Interactive buys 5 mln shares at $62.50 per share
* Acquires control from Barry Diller
* Diller to resign as chairman of TripAdvisor
* TripAdvisor shares jump over 7 pct, Liberty down 1.1 pct
(Adds total deal value, details; updates share prices)
Dec 11 John Malone's Liberty Interactive Corp
took control of travel information website TripAdvisor
Inc from veteran media mogul Barry Diller.
Liberty disclosed on Tuesday it bought about five million
shares of common stock of TripAdvisor from Diller and the
Diller-von Furstenberg Family Foundation at a price of $62.50
per share or about $312 million.
The deal represents a significant "control premium," said
James Dobson, an analyst with the Benchmark Co.
Shares of TripAdvisor were up 7.8 percent at $41.39 in
midday trade. Liberty shares fell 1.15 percent to $18.92.
"I think it's clearly a positive for the travel space,
particularly though for content-heavy media travel providers,"
Diller, who is also chairman of IAC/InterActive Corp
, will step down as TripAdvisor chairman, but will
continue as a director. IAC shares rose 2.5 percent.
"My only reason for resigning as chairman and disposing of
my interests is that I have more obligations than time," Diller
said in a statement. He has controlled the majority of voting
rights in TripAdvisor through shares he owned and those granted
in proxy by Liberty.
The existing agreement between Diller and Malone meant that
if Diller left TripAdvisor, the proxy would terminate and
Liberty could control the voting power of TripAdvisor's stock.
The transaction gives Liberty control of about 22 percent of
TripAdvisor's common stock and 57 percent of its voting stock.
Founded more than a decade ago, TripAdvisor is an online
travel site that offers advice, booking and planning tools to
consumers. It has more than 60 million unique monthly visitors
and over 75 million reviews and opinions, according to its
TripAdvisor was spun off from Expedia Inc last
(Reporting by Jennifer Saba in New York and Sayantani Ghosh in
Bangalore; editing by Saumyadeb Chakrabarty, Nick Zieminski, G