Shawshank, VA 3/11/12 (StreetBeat) – Travelzoo (Nasdaq: TZOO) shares are trading sharply higher Wednesday morning after Reuters reported that the company is planning to seek a buyer, citing “three people familiar with the matter.”The company publishes e-mail travel newsletters and offers travel-related daily deals.
The story notes that the company’s shares are down 75% since July 2011. Reuters says the company is in the process of hiring a financial advisor, and that it has received “takeover interest” from private equity firms and “trade buyers.”
The news service says that Benchmark Co. analyst Dan Kurnos named Amazon and Google as potential bidders; the online travel site ODIGEO also could be a buyer, Reuters reports.
Travelzoo is not an online travel agency. The company’s free newsletters are basically compilations of ads for travel-related deals; it claims more than 24 million subscribers. Travelzoo has been around since the dot-com bubble days; back in 1998, while it was still privately held, the company once created a stir by giving away free shares of stock to all comers as a promotional stunt.
TZOO this morning is up $5.84, or 27.7%, to $26.90. The company has a market cap of about $336 million.
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