By Anshuman Tripathy and Arasu Kannagi Basil
June 15 (Reuters) - American Express will buy restaurant booking platform TheFork from Tripadvisor in an all-cash deal worth $700 million, the companies said on Monday, sending shares of the online travel platform up 7% in morning trading.
Activist investor Starboard Value had in October last year pressed for TheFork's sale, as Tripadvisor struggled to recover from pandemic-era disruptions and contend with heavy competition from rivals including Booking
Holdings and Airbnb.
The deal will allow Tripadvisor to focus more on its experiences-led strategy as part of a major overhaul, the company said.
For American Express, buying TheFork will expand its dining network to 75,000 bookable venues and bolster its international business, which has been its fastest-growing segment for many years. It also builds on its acquisitions of dining platforms Resy and Tock.
"Dining is one of the most important ways people engage with our brand," said Rafa Marquez, president of international card services at American Express.
TheFork generated $232 million in revenue for the year ended March 31, a 25% jump from a year earlier, showed Tripadvisor's earnings report. The platform connects millions of diners with more than 50,000 restaurants across 11 European countries, according to the companies.
"We see the deal as a plus (for Tripadvisor), but talk of using proceeds to fund ongoing investment in the experiences business could be an area of investor pushback as it suggests no plans to explore options at this point for Viator," said BTIG analyst Jake Fuller. Viator is a Tripadvisor-owned online marketplace for tours, activities and attractions.
Meanwhile, analysts at William Blair said the deal was consistent with American Express’ focus on providing premium experiences and driving more customer engagement.
TheFork will continue to operate under its existing leadership and the transaction is expected to close before the end of 2026.
Goldman Sachs served as financial adviser to Tripadvisor and TheFork.
(Reporting by Arasu Kannagi Basil and Anshuman Tripathy in Bengaluru; Editing by Jonathan Ananda)
