| Market Capitalization (Millions $) |
- |
| Shares
Outstanding (Millions) |
58 |
| Employees |
23,000 |
| Revenues (TTM) (Millions $) |
11,536 |
| Net Income (TTM) (Millions $) |
-588 |
| Cash Flow (TTM) (Millions $) |
0 |
| Capital Exp. (TTM) (Millions $) |
965 |
Business Description
Liberty Expedia Holdings, Inc. is a publicly traded holding company that was created in 2017 when Liberty Interactive Corporation (now Qurate Retail, Inc.) spun off its stake in Expedia, Inc. Liberty Expedia Holdings (LEX) was created specifically to hold those Expedia shares, which represent a significant portion of the company's value.
LEX's primary asset is a 14.6% stake in Expedia Group, Inc., which operates a global online travel platform that offers various services, including airline and hotel reservations, car rentals, and vacation packages. In addition to the Expedia stake, LEX has a small investment in Interval Leisure Group, a hospitality and vacation ownership company.
As a holding company, LEX does not operate any businesses directly. It has no employees, and its only real source of income is dividends and capital gains from its investments. LEX is managed by a board of directors, which includes several executives from Liberty Media, the parent company of Liberty Interactive (and Qurate Retail).
Despite its relatively small portfolio of assets, LEX is a significant player in the travel industry. Expedia Group is one of the largest online travel agencies in the world, with brands such as Expedia.com, Hotels.com, Orbitz, and Travelocity under its umbrella. LEX's ownership stake in Expedia means it has a say in the company's strategic decisions and can benefit from its financial performance.
LEX's financial performance is closely tied to that of Expedia Group. When Expedia's stock price rises, so does LEX's. In 2020, LEX's revenue was $11.6 billion, and it generated a net income of $905 million. However, LEX's financial performance is subject to the volatility of the travel industry, which can be affected by events such as natural disasters, political instability, and pandemics.
LEX has faced some challenges in recent years. In 2019, activist investor Corvex Management, which owned a stake in LEX, pressured the company to sell its Expedia stake and return the proceeds to shareholders. Corvex argued that the Expedia investment was undervalued and that LEX's management was not doing enough to create value for shareholders. However, LEX's board rejected the proposal, and the company remains focused on maximizing the value of its Expedia investment.
Overall, Liberty Expedia Holdings is a significant player in the travel industry due to its ownership stake in Expedia Group. While it doesn't operate any businesses directly, its investment in Expedia gives it a powerful position in the online travel market. Despite facing some challenges, LEX remains focused on generating value for its shareholders by maximizing the performance of its investment portfolio.
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