Exclusive Resorts makes higher bid for Inspirato in ‘final offer’

The bidding war for Inspirato continues to escalate as Exclusive Resorts raises its offer in what it calls its “best and final offer.” The Denver-based vacation firm has increased its bid to acquire the luxury travel club from $3.15 to $3.50 per share, placing Inspirato’s overall value at $43.6 million, up from the previous $39 million offer.

Exclusive Resorts has also committed an additional $25 million to clear Inspirato’s debts, settle outstanding equity-linked securities, and cover transaction expenses, bringing the total offer to $68.6 million. CEO James Henderson emphasized that this increased bid represents the company’s maximum willingness to acquire Inspirato.

Despite Inspirato’s positive stock performance, closing at $3.07 per share on Thursday with a 5% increase for the week, the offer of $3.50 per share implies a 14% premium over the closing price. However, Inspirato refuted the proposal in an SEC filing issued on Friday, deeming it unworkable. The company noted that its board of directors would explore all options to safeguard the interests of the company and its shareholders.

The recent developments follow Inspirato’s decision to terminate a potential merger with Buyerlink, a digital marketing firm owned by Inspirato CEO Payam Zamani. Allegations of self-interest and undue influence by Zamani on the deal surfaced, prompting a backlash from a minority shareholder and ultimately resulting in the collapse of negotiations between the two companies.

Zamani, in response to the accusations, emphasized the importance of collective unity for successful transactions. He refrained from offering detailed comments due to a non-disclosure agreement with Exclusive, underscoring the sensitive nature of ongoing negotiations. Exclusive and Inspirato declined to provide further elaboration on the matter, indicating a commitment to confidentiality during the negotiation process.

Exclusive Resorts and Inspirato, founded by brothers Brad and Brent Handler, have undergone separate trajectories since their establishment. While the Handlers divested their stake in Exclusive in 2004, with AOL co-founder Steve Case assuming majority ownership, they retained substantial shares in Inspirato after its public listing in 2021. Zamani’s acquisition of half of Inspirato in 2024 cemented his position as CEO, reflecting a significant shift in leadership within the company.

The escalating bid and ensuing negotiations underscore the complexities of corporate acquisitions and strategic decision-making within the travel and leisure sector. As Exclusive Resorts and Inspirato navigate this pivotal moment, the outcome of their deliberations remains uncertain, with both parties asserting their commitment to furthering the best interests of their organizations and stakeholders.