- Expedia stock soared as much as 7.6% early Tuesday after the company announced the resignations of CEO Mark Okerstrom and CFO Alan Pickerill.
- The ouster was driven by a disconnect between Expedia’s board and senior management, chairman Barry Diller said in a statement, citing an “ambitious” restructuring plan that yielded “lackluster near-term outlook.”
- Expedia also announced a 20 million-share buyback program, with Diller noting he would personally purchase more shares as a “tangible sign of my faith” in the company.
- Watch Expedia trade live here.
Expedia stock jumped as much as 7.6% in early Tuesday trading after the travel company announced the resignations of its CEO and chief financial officer.
CEO Mark Okerstrom and Chief Financial Officer Alan Pickerill left the company as part of a leadership shakeup, the company said Wednesday. Both took their lead roles in 2017, with Okerstrom replacing current Uber CEO Dara Khosrowshahi.
The move was motivated by a disconnect between the company’s board and senior management around Expedia’s reorganization plan, chairman Barry Diller said in a statement. The “ambitious” plan yielded “lackluster near-term outlook” and a “material loss of focus on our current operations,” Diller added.
“The Board disagreed with that outlook, as well as the departing leadership’s vision for growth, strongly believing the Company can accelerate growth in 2020,” Diller said. “That divergence necessitated a change in management.”
Diller and Vice Chairman Peter Kern will oversee the company's leadership as it looks for replacements, according to the statement. Chief Strategy Officer Eric Hart will serve as acting CFO.
Expedia also announced a 20 million-share buyback program, supplementing the 9 million shares already slated for repurchase. The chairman added that he'd purchase additional shares as "a tangible sign of my faith in and commitment to" the company's future.
Expedia's share price tanked as much as 28% on November 7 after the company reported disappointing third-quarter earnings. Expedia signaled that decreased exposure in Google search results would serve as a significant obstacle in future quarters.
Expedia stock opened Wednesday at $99 per share, down about 12% year-to-date.
The company has 17 "buy" ratings, 16 "hold" ratings, and no "sell" ratings from analysts, and a consensus price target of $131.61, according to Bloomberg data.
Now read more markets coverage from Markets Insider and Business Insider:
The Chicago real estate market is even worse than Hong Kong's, new data shows
