XML 47 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Party Transaction
3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. As of March 31, 2014, Azzurro is the Company's largest stockholder, holding approximately 49.0% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Mr. Holger Bartel that provides it with a total of 50.4% of the voting power.
In 2009, the Company sold its Asia Pacific operating segment to Travelzoo (Asia) Limited and Travelzoo Japan K.K., subsidiaries of Azzurro Capital Inc. There is a reciprocal revenue-sharing and hosting agreement among the Azzurro entities operating the Travelzoo business in Asia Pacific and the Company related to cross-selling audiences and hosting and development services by the Company, which were entered into in connection with the sale of Asia Pacific business segment. The net fees generated by the Company under these agreements amounted to $156,000 and $295,000 for the three months ended March 31, 2014 and 2013, respectively. The Company’s receivables and payables from the Azzurro entities operating the Travelzoo business in Asia Pacific under these agreements were $976,000 and $561,000 as of March 31, 2014, and $760,000 and $501,000 as of December 31, 2013, respectively and were included in prepaid expenses and other current assets and accounts payable in the accompanying unaudited condensed consolidated balance sheets. In addition, as part of the sale of the Asia Pacific operating segment in 2009, the Company obtained an option, which expires in June 2020, to repurchase the Asia Pacific business pursuant to the terms of the option agreement.