TripAdvisor Shares Affected By Google's Frommer's Purchase
When Google entered the online travel arena by purchasing Frommer's online travel-guide business, the effects reverberated around the world of travel sites such as Tripadvisor Inc. (NASDAQ:TRIP), and could potentially have been an impetus for heavy insider trading.
According to The Wall Street Journal, Google announced it has not yet decided if it will cancel the company's printed publications or bring the company 100 percent online. Frommer's could also be paired up with Zagat, which Google purchased in 2011.
"Our commitment is to keep things as they are today and once we combine operations, we’ll know better what the future looks like," said Bernardo Hernandez, a director of product management at Google.
The announcement sent Tripadvisor shares down 4.5 percent to $33.52. Given Google's history of entering a new space and remaining there until it has dominated market share, the online travel industry could see major effects from Google's purchase.
The search giant first entered the travel industry when it purchased flight-data company ITA software, and later created its own flight-booking service.
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