Analyst: No Groupon-like pause -- TripAdvisor spinoff on track

While Groupon is reconsidering the timing of its IPO because of market volatility and other factors, there seemingly is no hesitation about Expedia Inc.'s hoped-for spinoff of TripAdvisor.

After a delay announced in June, it's apparently game on for the separation of Expedia and TripAdvisor by the end of 2011.

That's the word from Herman Leung, an Internet analyst from Susquehanna Financial Group, who recently met with the Expedia management team.

Although Kayak's IPO try may be on the backburner and Groupon reportedly is considering a delay, Leung  says TripAdvisor's more than 30% growth rate and 50% margins mean that parent company Expedia "doesn't have to justify TripAdvisor's business model."

Leung believes the only things that could stymie a spinoff would be if Expedia found out the the spinoff would not be tax-free or if the U.S. Securities and Exchange Commission requires further disclosures.

The latter would possibly delay the spinoff into 2012, Leung believes.

A probe by the UK's Advertising Standards Authority into the trustworthiness of TripAdvisor's user reviews isn't expected to reroute the spinoff, either.

So far, there has been no word about whether the U.S. Federal Trade Commission is looking into the issue, as well.