Expedia Chief Executive Dara Khosrowshahi told Dow Jones that TripAdvisor had grown to the point it was now ready to be spun off into a pure-play media company that can stand on its own.

"It is a matter of size, globalization and diversification of revenues," he said. "It is really ready to stand on its own."

Wall Street applauded the move, sending Expedia shares up more than 13% to $25.43 in after hours trading.

Analysts debated why Expedia opted to spin-out TripAdvisor at this point, which some focusing on shareholder value creation, while others suggested it was a move that will enable both entities to focus on their different businesses.

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