SEATTLE, April 23, 2020 /PRNewswire/ -- Barry Diller, Chairman and Senior Executive of
Expedia Group (NASDAQ: EXPE) stated, "We have one mandate –
to conserve cash, survive, and use this time to reconstruct a
stronger enterprise to serve the future of travel. We
are unable to make any predictions as to when travel will rebound
but we emphatically believe that it will, for....'if there's life,
there's travel.'"
What follows is an omnibus announcement that details the actions
approved today by Expedia's Board of Directors:
1/Peter Kern is named Chief
Executive Officer of Expedia Group
Peter Kern has been a key
member of our Board since 2005 and became our Vice Chairman in
2018. When we changed management in December, Mr.
Kern joined with me in operational supervision of the
company. In these last five months, he has
shown outstanding leadership in all aspects of the business, first
in a wide reorganization and then dealing with the impact of the
Corona crisis on our business. He now knows all aspects
of the business, and we are truly lucky that he is now available to
devote his full time to Expedia. Mr. Kern has
spent decades in leadership roles in public and private settings,
most recently as the CEO of Tribune Media.
2/Eric Hart is named Expedia
Group's Chief Financial Officer
Eric Hart has been with Expedia
for 11 years now, and during that time he's held responsibility for
group strategy, business development, global M&A, investments,
and the CarRentals.com business. He's a strong
executive who's been truly tested these past five months as Acting
CFO during both the reorganization and the Corona
crisis. He has fully earned permanent status as
CFO.
3/$3 Billion plus of new
financing for Expedia Group
As part of a comprehensive strategy to bolster Expedia's
financial strength, we announced this morning that we are raising
approximately $3.2B of new
capital. This consists of an equity investment of
$1.2B by Apollo and Silver Lake, two
highly respected private equity firms. The equity will
be non-voting and non-convertible preferred stock. It
will also entail approximately $2B in
new debt financing. We are also ceasing dividends until the
business rebounds.
4/Compensation changes for the Board of Directors, Chairman,
Chief Executive Officer and Senior Operating Executives
The Chairman, Chief Executive Officer and members of the Board
will forgo cash compensation for the remainder of the
year. Senior Executives – the Travel Leadership Team –
will be taking a reduction in salary of 25% for the balance of the
year.
5/Employee Policies during the Corona crisis
- We will be implementing furloughs and reduced work week
programs for select volume-based teams with limited work right
now.
-
- Our intention is that impacted employees would retain Expedia
healthcare benefits coverage while on furlough or reduced hours,
and we will cover the employee premiums in the case of
furloughs.
- We will support employees by participating in government aid
where feasible in different countries.
- 401(k) matching contributions in the U.S. will be suspended
through the end of the year.
- We will offer a voluntary reduced work week program for
parents, caregivers and employees with personal needs to take a
temporary shortened 3-day work week.
- These steps on furlough and reduced work week programs as well
as voluntary reduced work weeks will be active through August 31, when we will re-evaluate the situation
and hope to be in a better position with volumes coming back and
plenty of work to keep us all busy.
Since the crisis began, the Company has encountered an
extraordinary number of challenges, and just as governments around
the world were unprepared, so too were we. We had
limited online tools to support widespread cancellations and our
call volume spiked 500%. Under extraordinary pressure,
our tech teams built new tools, and managed to bring our call
center capacity to acceptable levels.
In addition, every day now for the past 38 days beginning
March 16, the Travel Leadership Team,
together with Mr. Kern and me, have had an intensive session on the
day's issues. There is nothing like a crisis to show
the mettle of our executives, and I can say that without exception,
none have been wanting. In fact, they've shown we have
an outstanding group at all levels of the Company.
Since the first of the year, this Company has gone through
multiple challenging stages. First, the reorganization
that resulted from the management change, which has now been mostly
completed – we were fortunate we got to this prior to the
crisis. Second, and ongoing, dealing with the crisis
itself, cutting our costs everywhere, and today announcing
additional financing, which, while the usual strain, was led
flawlessly by Messrs. Kern and Hart. And, to come in
the next months, an intensified process to recalibrate our
organization for the future. We've learned such an
enormous amount over these almost five months – we're going to put
that to great and definitive use as we come out of this
period. I believe we'll have a far finer operation
coming out of this crisis than going into it.
I wanted our shareholders, employees and the public to have the
most comprehensive outline of all that has happened during this
period of existential uncertainty.
We have the financing to carry us through, a superb newly named
senior management team, and a very clear focus for whatever the
future brings.
So, we'll seize the (next) day...
Barry Diller
Chairman and Senior Executive
This release does not constitute an offer to sell or the
solicitation of an offer to purchase any securities of Expedia
Group or any other person. Any securities that may be offered by
Expedia Group in the future in connection with a potential
transaction will not be registered under the Securities Act of
1933, as amended (the "Securities Act"), or the securities laws of
any state or any other applicable securities laws and will be
issued in reliance upon exemptions from the registration
requirements of the securities act and such laws. The potential
transaction discussed herein is not an offering in any jurisdiction
where the making of such offer on the terms provided herein is not
permitted by law. No federal, state or foreign securities
commission or regulatory authority has confirmed the accuracy or
completeness or determined the adequacy of this document or any
securities that may be offered in the future in connection with a
potential transaction.
Forward Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect current
expectations and projections about future events, are based on
currently available information and are inherently subject to
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual results and the timing and outcome of
events may differ materially from those expressed or implied in the
forward-looking statements for a variety of reasons, including,
among others: risks related to the ongoing global coronavirus
(COVID-19) pandemic and the significant adverse global impact that
it has had on the travel industry and our business; an increasingly
competitive global environment, as well as other risks detailed in
our public filings with the SEC, including our annual report on
Form 10-K for the year ended December 31,
2019 and our current report Form 8-K filed with the SEC on
April 22, 2020. Other unknown or
unpredictable factors also could have a material adverse effect on
our business, financial condition and results of operations.
In addition, in light of these risks and uncertainties, the matters
referred to in the forward-looking statements contained in this
press release may not in fact occur. Accordingly, you should
not place undue reliance on those statements. We are not
under any obligation, and do not intend, to publicly or otherwise
update, review or revise any forward-looking statement or other
statement in this document, whether as a result of new information,
future events or otherwise, even if experience or future events
make it clear that any expected results express or implied by these
forward-looking statements will not be realized.
About Expedia Group
Expedia Group (NASDAQ: EXPE) helps knock down the barriers to
travel, making it easier, more enjoyable, more attainable and more
accessible. We are here to bring the world within reach for
customers and partners around the globe. We leverage our platform
and technology capabilities across an extensive portfolio of
businesses and brands to orchestrate the movement of people and the
delivery of travel experiences on both a local and global basis.
Our family of travel brands includes: Brand Expedia®, Hotels.com®,
Expedia® Partner Solutions, Vrbo®, Egencia®, trivago®, HomeAway®,
Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®,
Expedia Group™ Media Solutions, Expedia Local Expert®,
CarRentals.com™, Expedia® CruiseShipCenters®, Classic Vacations®,
Traveldoo®, VacationRentals.com and SilverRail™.
© 2020 Expedia, Inc. All rights reserved. Trademarks and logos
are the property of their respective owners. CST: 2029030-50
View original content to download
multimedia:http://www.prnewswire.com/news-releases/statement-from-expedia-group-chairman-barry-diller-301046108.html
SOURCE Expedia Group