TripAdvisor 2011 Annual Report Download - page 27

Table of Contents
In addition, a sale or disposition of the stock of Expedia or our stock by certain persons that own 5% or more of any class of our stock
could disqualify the tax free status of the Spin-Off. Liberty Interactive Corporation and its affiliates own stock of TripAdvisor representing
62.4% by vote and 30.5% beneficial ownership. Accordingly, in evaluating our ability to engage in certain transactions involving our equity
securities, it is possible that Expedia and we will need to take into account the activities of Liberty Interactive Corporation and its affiliates.
We rely on information technology to operate our business and maintain competitiveness, and any failure to adapt to technological
developments or industry trends could harm our businesses.
We depend on the use of sophisticated information technologies and systems. As our operations grow in size and scope, we must
continuously improve and upgrade our systems and infrastructure while maintaining or improving the reliability and integrity of our systems and
infrastructure. Our future success also depends on our ability to adapt our services and infrastructure to meet rapidly evolving consumer trends
and demands while continuing to improve the performance, features and reliability of our services in response to competitive service and product
offerings. The emergence of alternative platforms such as mobile and tablet computing devices and the emergence of niche competitors who may
be able to optimize products, services or strategies for such platforms will require new investment in technology. New developments in other
areas, such as cloud computing, could also make it easier for competition to enter our markets due to lower up-front technology costs. In
addition, we may not be able to maintain our existing systems or replace or introduce new technologies and systems as quickly as we would like
or in a cost-effective manner.
Our international operations involve additional risks and our exposure to these risks will increase as our business expands globally.
We operate in a number of jurisdictions outside of the United States and intend to continue to expand our international operations. To
achieve widespread acceptance in new countries and markets, we must continue to tailor our services and business model to the unique
circumstances of such countries and markets, which can be difficult, costly and divert management and personnel resources. Failure to adapt
practices and models effectively to each country into which we expand could slow our international growth.
We have businesses operating in China, which create particular risks and uncertainties relating to the laws in China. We operate in China
under the brands daodao.com and kuxun.cn. The success of these businesses, and of any future investments in China, is subject to risks and
uncertainties regarding the application, development and interpretation of China’s laws and regulations.
The laws and regulations of China restrict foreign investment in areas including air-ticketing and travel agency services, Internet content
provision, mobile communication and related businesses. Although we have established effective control of our Chinese businesses through a
series of agreements, future developments in the interpretation or enforcement of Chinese laws and regulations or a dispute relating to these
agreements could restrict our ability to operate or restructure these businesses or to engage in strategic transactions.
Other risks faced by us as a result of our international operations, including our operations in China, include:
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•
Political instability;
•
Threatened
or actual acts of terrorism;
• Regulatory requirements, including the Foreign Corrupt Practices Act and newly enacted U.K. Bribery Act, data privacy
requirements, labor laws and anti
-
competition regulations;
• Ability to comply with additional U.S. laws applicable to U.S. companies operating internationally as well as local laws and
regulations;