Expedia has announced it is buying Northwood’s portfolio of equity investments and will be selling the remainder of its Northwood shares on the NYSE, according to a company filing with the Securities and Exchange Commission.
The announcement comes after a series of disappointing earnings and a stock market slump that left Expedia stock trading at about 20 cents per share.
In a blog post, the company said it had purchased $3.5 billion in Northwood equity investments since it began operations in 2007.
The company also said it would “dispose of all remaining Northwood Series A and Series B convertible preferred stock” in a “short sale” of Northwood common stock on March 13, 2019, according the filing.
The stock was trading around 10 cents per stock at the time.
The move follows the departure of CEO Steve Huffman, who announced in October that the company would be moving into a more “growth-oriented” focus.
Expedia’s stock fell about 13 percent in the first quarter of 2019, but was up slightly in the second quarter.
In November, Expedia filed a lawsuit against two Northwood investment firms, citing violations of the Investment Advisers Act, or IAA, which bars companies from engaging in any type of investment activity that would be expected to increase the risk of a company’s loss in the event of a major stock market downturn.
The IAA prohibits firms from making investments in a company that could “increase the probability of substantial loss of capital or substantial impairment of its assets.”
The companies are owned by John Bogle, the CEO of the Vanguard Group, which has more than $10 trillion under management.
The firms’ attorney in the case, Robert Hirsch, declined to comment.
The lawsuit also claims that Expedia “is acting with deliberate indifference” to the financial stability of Northwoods employees.
Hirsch also did not respond to requests for comment.