The Fly

Travelzoo downgraded to Market Perform from Outperform at Barrington

Barrington analyst James Goss downgraded Travelzoo to Market Perform from Outperform after the company agreed to issue 3.4M shares, subject to shareholder approval, to its largest shareholder for total consideration of roughly $20M, including $10M in the form of either cash or notes and the remainder from the acquisition of a service provider for its Metaverse ventures. A "key difficulty exists" in assigning a value to its Metaverse travel experiences given uncertainty on the economics and the competitive environment while the added dilution created with this financing is "also a troublesome feature," Goss tells investors.

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