Shares of Travelzoo (NASDAQ:TZOO) jumped 30% Wednesday morning on a report that the publisher of travel newsletters and websites is mulling its sale.
The New York-based provider of travel deals, which has seen its shares fall 75% from last summer, is hiring a financial adviser to help it weigh strategic options, sources close to the matter told Reuters.
Travelzoo, which has a market value of about $336 million and more than 24 million global subscribers, started pondering a sale after private equity firms and trade buyers expressed interest in taking over the company, those people said.
A Travelzoo spokeswoman told FOXBusiness.com that the company had no comment on the report.
The company, which competes with Expedia (NASDAQ:EXPE) and Princeline.com (NASDSAQ:PCLN), has posted a series of disappointing earnings reports over the last several quarters starting in July, when it missed analyst estimates on rising costs.
Travelzoo doesn’t allow customers to book directly on its site, instead offering discounted trips that link to other sites, and profiting from ad revenue.
Google (NASDAQ:GOOG), which bought travel technology company ITA Software last year, might be one of many interested in acquiring Travelzoo, sources told Reuters. Google did not immediately respond to FOXBusiness.com for this story.
Travelzoo recently entered the local deals market, offering subscribers the ability to buy vouchers that give them discounts at hotels and restaurants, as well as other activities. That has put it in direct competition with leading daily deals site Groupon (NASDAQ:GRPN).
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