Business

Expedia CEO, CFO quit after clashing with board

Expedia Group's chief executive officer and finance head have resigned following a disagreement with the online travel company's board over its business outlook, chairman Barry Diller said on Wednesday.

Mr Diller, who is also chairman of Expedia's former parent IAC (InterActiveCorp), said he will oversee the executive leadership team along with vice-chairman Peter Kern until the board finds a replacement.

"Ultimately, senior management and the board disagreed on strategy,"he said in a statement, adding the company's reorganisation plan launched earlier this year had led to disappointing third-quarter results and a "lacklustre" near-term outlook.

"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," Mr Diller, a billionaire, said.

He also said he would purchase additional shares in Expedia in a show of "faith in and commitment to the company's long-term future".

The company's shares, which have lost about 12 per cent this year, rose nearly 8 per cent to US$107.04 (S$145) after the surprise resignation of chief executive Mark Okerstrom and chief financial officer Alan Pickerill.

"It raises the question - what did the board members see in the business in terms of levers and opportunities for 2020 that the management didn't see?" D.A. Davidson analyst Tom White said.- REUTERS

BUSINESS & FINANCE