WSJ: “This is Embarrasing For Mr. Diller”

August 4, 2007

 

The credit crisis struck media mogul Barry Diller, forcing him to scale back his upcoming 116.7 million share buyout, sending shares of Expedia reeling earlier in the week. From Tuesday’s WSJ:

“When Expedia announced its $3.5 billion share-repurchase plan last month, it sure looked like an overpriced leveraged buyout in disguise. While the deal may have been dressed up as a shareholder-friendly buyback, it clearly depended on the kindness of lenders. But it took the travel Web site’s bankers some time to figure all that out. Now, five weeks after they agreed to back Chairman Barry Diller’s plan to take control of Expedia by launching a buyback of 42% of the stock, the company has scaled the deal back to 9%. Expedia said it couldn’t reach acceptable terms with its lenders.

“This is embarrassing for Mr. Diller.”

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