Travelocity Issue Still Hangs Over Sabre's Expected April 16 IPO
Skift Take
As investors consider the looming Sabre IPO, they'll have to consider how adverse the impact would be if Expedia opts to terminate its Travelocity agreement with Sabre during the course of its 9-year term.
Sabre announced that it plans to price its IPO on or around April 16 as it aims to raise $895 million or so to pay down debt, and its roadshow presentation highlights how the ultimate fate of Travelocity looms as a lingering issue that investors would have to factor in.
Under a strategic marketing agreement signed last year and quietly amended in March 2014, Expedia agreed to power Sabre's Travelocity sites in the U.S. and Canada, and provide access to its hotel supply and customer service capabilities. The amendment changed the commercial
