A report in Tuesday’s Wall Street Journal reveals Expedia (NASDAQ:EXPE) is in advanced talks to sell a stake to private-equity firms Silver Lake Partners and Apollo Global Management Inc for about $1 billion.
That cash would enable Expedia (NASDAQ:EXPE) to ride out the travel ban, and what are currently zero revenues.
The Seattle-based Expedia’s shares have fallen about 47% so far this year as global travel restrictions due to the coronavirus pandemic ground the travel and tourism industry to a virtual halt.
The company is expected to give board representation to the investors as part of the deal, which could be announced this week, the Journal reported, citing people familiar with the matter.
However, the Journal report added, the talks could still collapse and Expedia could opt to raise funds in a public-debt offering instead.
Expedia and Silver Lake declined to comment, while Apollo did not immediately respond to a request for comment.
Shares in EXPE popped $5.78, or 10.1%, to $63.03