Travelzoo May Sell Asia Pacific Division To Ex-CEO

NEW YORK (AP) — Travelzoo Inc., an Internet media company that operates travel-related Web sites around the world, said Friday it plans to sell its Asia Pacific division, likely to a company to be formed by the company's founder and former CEO, Ralph Bartel.

Travelzoo said its Asia Pacific division posted an operating loss of about $7.8 million for the 12 months that ended June 30.

The company's agreement with Bartel, who is also Travelzoo's board chairman and majority stockholder, is non-exclusive and nonbinding.

Specific terms of the agreement were not disclosed, but the company said it would receive a cash payment at closing with an option to reacquire the operations at fair market value in the future. Unless a better offer is found, the deal is expected to close soon.

In a statement, Holger Bartel, Travelzoo's current CEO and Ralph Bartel's brother, said investors would be better served if Travelzoo could focus more on Europe and North America and its new travel search engine, Fly.com.

Shares of Travelzoo slipped 5 cents to close at $13.56.