8-KMaterial Agreements

Expedia Group, Inc. 8-K Report, Material Agreement (Jun 27, 2007)

Filed June 27, 2007For Securities:EXPE

Summary

Expedia, Inc. has filed an 8-K report detailing a significant material definitive agreement entered into on June 25, 2007. The company has entered into a ten-year office building lease for approximately 348,000 square feet of space in Bellevue, Washington. This lease agreement represents a substantial commitment to a new primary office location for the company. The lease is with Tower 333 LLC and is set to commence on the earlier of 180 days after possession is delivered or when Expedia begins operations in the building. The report also outlines key terms, including initial base rent, annual escalations, and the potential for Expedia to lease additional space and extend the lease term. Investors should note this as a significant operational decision reflecting the company's growth and long-term presence in the Bellevue area.

Key Highlights

  • 1Expedia, Inc. entered into a 10-year office building lease agreement on June 25, 2007.
  • 2The lease is for approximately 348,000 square feet of office space in Bellevue, Washington.
  • 3The landlord for the lease is Tower 333 LLC.
  • 4The lease commencement is tied to the landlord's delivery of possession or Expedia starting operations.
  • 5Expedia has a potential cancellation option if possession is not delivered by September 30, 2008.
  • 6Initial base rent starts at $25.85 per square foot, escalating to $35.85 by the final year.
  • 7Expedia has options to lease additional space and extend the lease term for two five-year periods.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report a material definitive agreement, specifically a ten-year office building lease entered into by Expedia, Inc. for a new office space in Bellevue, Washington.

The key financial implications include a significant commitment to base rent, starting at $25.85 per square foot and increasing to $35.85 per square foot by the end of the initial ten-year term, plus the company's pro-rata share of building operating costs. This represents a substantial operational expense for Expedia.

Yes, Expedia has certain rights. It can elect to cancel the lease if possession is not delivered by September 30, 2008. Furthermore, under specific conditions, Expedia has the right of first offer to lease additional space and an option to extend the lease term for two consecutive five-year periods.

Expedia is leasing approximately 348,000 square feet of office space.