Expedia Grabs $3.2 Billion in Private Equity Financing and Appoints Peter Kern CEO
Skift Take
Barry Diller followed a familiar pattern and appointed someone he's known for years and feels comfortable working with as CEO. Peter Kern will have no trouble working with Apollo and Silver Lake, and with making deep cuts because he is a private equity guy at heart.
Expedia Group on Thursday said it appointed Peter Kern CEO, secured $3.2 billion in financing from two prominent private equity companies, and announced that it will be implementing furloughs and reduced work hours.
The company also stated that it will stop issuing dividends to shareholders until its business recovers from the coronavirus crisis, and it will apply for governmental relief monies in various countries where feasible "to support employees."
Kern, who will continue to serve as vice chairman of the Expedia Group board, was running the company with chairman and senior executive Barry Diller since then-CEO Mark Okerstrom was ousted in early December.
The company also announced that Eric Hart will become Expedia Group's chief financial officer.
The financing announced Thursday is for $3.2 billion, including $1.2 billion in preferred stock, and $2 billion in debt financing. The equity investment comes from Apollo Global Management and Silver Lake, and is larger than the $1 billion that the Wall Street Journal reported had been under
