TripAdvisor 2015 Annual Report Download - page 27

Future sales of shares of our common stock in the public market, or the perception that such sales may occur, may depress our stock price.
FortheperiodendedDecember31,2015,theaveragedailytradingvolumeofourcommonstockonNASDAQwasapproximately2.0millionshares.Ifour
existingstockholdersortheirdistributeessellsubstantialamountsofourcommonstockinthepublicmarket,themarketpriceofthecommonstockcoulddecrease
significantly.Theperceptioninthepublicmarketthatourexistingstockholdersmightsellsharesofcommonstockcouldalsodepressthetradingpriceofour
commonstock.Inaddition,certainstockholdershaverights,subjecttosomeconditions,torequireustofileregistrationstatementscoveringtheirsharesorto
includetheirsharesinregistrationstatementsthatwemayfileforourselvesorotherstockholders.IfLTRIPorsomeotherstockholdersellssubstantialamountsof
ourcommonstockinthepublicmarket,orifthereisaperceptioninthepublicmarketthatLTRIPmightsellsharesofourcommonstock,themarketpriceofour
commonstockcoulddecreasesignificantly.Adeclineinthepriceofsharesofourcommonstockmightimpedeourabilitytoraisecapitalthroughtheissuanceof
additionalsharesofourcommonstockorotherequitysecurities.
Anti-takeover provisions in our organizational documents and Delaware law may discourage or prevent a change of control, even if an acquisition would be
beneficial to our stockholders, which could affect our stock price adversely and prevent attempts by our stockholders to replace or remove our current
management.
OurcertificateofincorporationandbylawscontainprovisionsthatcoulddelayorpreventachangeofcontrolofourcompanyorchangesinourBoardof
Directorsthatourstockholdersmightconsiderfavorable.Someoftheseprovisions:
·AuthorizetheissuanceofpreferredstockwhichcanbecreatedandissuedbytheBoardofDirectorswithoutpriorstockholderapproval,withrights
seniortothoseofourcommonstock;and
·Prohibitourstockholdersfromfillingboardvacanciesorcallingspecialstockholdermeetings.
WearesubjecttotheprovisionsofSection203oftheDelawareGeneralCorporationLaw,whichmayprohibitcertainbusinesscombinationswith
stockholdersowning15%ormoreofouroutstandingvotingstock.Theseandotherprovisionsinourcertificateofincorporation,bylawsandDelawarelawcould
makeitmoredifficultforstockholdersorpotentialacquirerstoobtaincontrolofourBoardofDirectorsorinitiateactionsthatareopposedbyourthen-current
BoardofDirectors,includingamerger,tenderofferorproxycontestinvolvingourcompany.Anydelayorpreventionofachangeofcontroltransactionorchanges
inourBoardofDirectorscouldcausethemarketpriceofourcommonstocktodecline.
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Item 1B. Unresolved Staff Comments
None.
Item 2 . Properties
Wecurrentlyleaseapproximately280,000squarefeetforourcorporateheadquartersinNeedham,Massachusetts,pursuanttoaleasewithanexpirationdate
ofDecember2030,withanoptiontoextendtheleasetermfortwoconsecutivetermsoffiveyearseach.Referto“Note12—Commitments and Contingencies ”in
thenotestoourconsolidatedfinancialstatementsinthisAnnualReportonForm10-Kforfurtherinformationonourcorporateheadquarters.
Wealsoleaseanaggregateofapproximately410,000squarefeetatapproximately40otherlocationsacrossNorthAmerica,EuropeandAsiaPacific,
includingNewYork,Boston,London,BeijingandSingapore,pursuanttoleaseswithexpirationdatesthroughJune2027.Theseleasesareprimarilyforoursales
offices,subsidiaryheadquarters,andinternationalmanagementteams.
Webelievethatourcurrentfacilitiesareadequateforourcurrentoperationsandthatadditionalleasedspacecanbeobtainedonreasonabletermsifneeded.
WedonotlegallyownanyrealestateasofDecember31,2015.
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