TripAdvisor 2015 Annual Report Download - page 20

Investment in new business strategies and acquisitions could disrupt our ongoing business and present new challenges and risks.
Wehaveinvested,andinthefuturemayinvest,innewbusinessstrategiesoracquisitions.Suchendeavorsmayinvolvesignificantrisksanduncertainties,
includingdistractionofmanagementfromcurrentoperations,greaterthanexpectedliabilitiesandexpenses,inadequatereturnofcapital,andissuesnotdiscovered
inourinvestigationsandevaluationsofthosestrategiesandacquisitions.Wemaydecidetomakeminorityinvestments,includingthroughjointventures,inwhich
wehavelimitedornomanagementoroperationalcontrol.Thecontrollingpersoninsuchcasemayhavebusinessinterests,strategiesorgoalsthatareinconsistent
withours,anddecisionsofthecompanyorventureinwhichweinvestedmayresultinharmtoourreputationoradverselyaffectthevalueofourinvestment.
Further,wemayissuesharesofourcommonstockinthesetransactions,whichcouldresultindilutiontoourstockholders.
If the businesses we have acquired or invested in do not perform as expected or we are unable to effectively integrate acquired businesses, our operating results
and prospects could be harmed.
Wehaveacquiredanumberofbusinessesinthepastandourfuturegrowthmaydepend,inpart,onfutureacquisitions,anyofwhichcouldbematerialto
ourfinancialconditionandresultsofoperations.Therearecertainfinancialandoperationalrisksrelatedtoacquisitionsthatmayhaveamaterialimpactonour
businessincluding,butnotlimitedto,thefollowing:
·Expectedandunexpectedcostsincurredinidentifyingandpursuingacquisitions,andperformingduediligenceonpotentialacquisitiontargetsthat
mayormaynotbesuccessful;
·Useofcashresourcesandincurrenceofdebtandcontingentliabilitiesinfundingacquisitionsthatmaylimitotherpotentialusesofourcash,
includingstockrepurchases,dividendpaymentsandretirementofoutstandingindebtedness;
·Amortizationexpensesrelatedtoacquiredintangibleassetsandotheradverseaccountingconsequences;Diversionofmanagement’sattentionor
otherresourcesfromourexistingbusiness;
·Difficultiesandexpensesinintegratingtheoperations,products,technology,privacyprotectionsystems,informationsystemsorpersonnelofthe
acquiredcompany;
·Theassumptionofknownandunknowndebtandliabilitiesoftheacquiredcompany,includingcostsassociatedwithlitigationandotherclaims
relatingtotheacquiredcompany;
·Failureofanyacquiredcompanytoachieveanticipatedrevenues,earningsorcashflowsortoretainkeymanagementoremployees;
·Failuretogenerateadequatereturnsonacquisitionsandinvestments;
·Entranceintomarketsinwhichwehavenodirectpriorexperienceandincreasedcomplexityinourbusiness;
·Impairmentofgoodwillorotherintangibleassetssuchastrademarksorotherintellectualpropertyarisingfromacquisitions;and
·Adversemarketreactiontoacquisitions.
Moreover,werelyheavilyontherepresentationsandwarrantiesprovidedtousbythesellersofacquiredcompanies,includingastheyrelatetoownership
andrightsinintellectualpropertyandcompliancewithlawsandcontractualrequirements.Ourfailuretoaddresstheserisksorotherproblemsencounteredin
connectionwithpastorfutureacquisitionsandinvestmentscouldcauseustofailtorealizetheanticipatedbenefitsofsuchacquisitionsorinvestments,incur
unanticipatedliabilitiesandharmourbusinessgenerally.
If we fail to manage our growth effectively, our brand, results of operations and business could be harmed.
Wehaveexperiencedrapidgrowthinourheadcountandoperations,whichplacessubstantialdemandsonmanagementandouroperationalinfrastructure.
Wecontinuetomakesubstantialinvestmentsinourtechnology,salesandmarketingandcommunitymanagementorganizations.Aswecontinuetogrow,wemust
effectivelyintegrate,developandmotivatealargenumberofnewemployees,includingemployeesininternationalmarkets,whilemaintainingthebeneficial
aspectsofourcompanyculture.Ifwedonotmanagethegrowthofourbusinessandoperationseffectively,thequalityofourplatformandefficiencyofour
operationscouldsuffer,whichcouldharmourbrand,resultsofoperationsandbusiness.
Our international operations involve additional risks and our exposure to these risks increases as our business continues to expand globally.
WeoperateinanumberofjurisdictionsoutsideoftheUnitedStatesandcontinuetoexpandourinternationaloperations.Manyoftheseregionshave
differenteconomicconditions,languages,currencies,consumerexpectations,levelsofconsumeracceptanceand
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