Shares of travel platform Tripadvisor (NASDAQ: TRIP) got hammered on Wednesday after reporting quarterly financial results, revealing that the company wasn't for sale, and as investors grappled with concerning commentary from Liberty Tripadvisor Holdings. As of 1:30 p.m. ET, Tripadvisor stock was down 28%.

This confusing story is hard to succinctly explain, but here goes: Liberty Tripadvisor is an independent holding company and holds more than 29 million shares of Tripadvisor, between Class A and Class B shares. However, its Class B shares give Liberty Tripadvisor full voting control over Tripadvisor. And right now, Liberty Tripadvisor is in financial trouble.

Liberty Tripadvisor has redeemable preferred stock with a redemption date of March 27, 2025. To redeem this stock from holders, it will cost the company around $300 million, and it doesn't have the money.

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Source Fool.com