For years we have we have come to know
William Shatter as the Priceline negotiator but even he never pulled
off a deal like the Priceline
Group Inc. announced on Friday. That is when the website so
famous for giving us specular deals on used hotel rooms agreed to
purchase Opentable, a
restaurant reservation website, for $2.6 billion.
“Travelers are diners,” Priceline
Group CEO and President Darren Huston said on a conference call.
“It’s the same customers. There’s opportunity to cross-promote
brands.”
That price breaks down to $103 per
share which is $32.57 more than the $70.43 a share the stock closed
at on Thursday. Buying a company at a 46% premium might seem a little
strange for a company know for getting things at a discount. When you
factor in that OpenTable provides reservation in over 31.0000
restaurants it makes perfect sense.
“This will be a one-stop solution to
the customers,” Brian Sozzi, of Belus Capital Advisors said about
the deal. He noted that Priceline is becoming like an Amazon.com to
travelers.
OpenTable is just the latest
acquisition by Priceline. In late 2012 they purchased the discount
travel site Kayak. Priceline also
acquired discount lodging site Booking.com
back is 2005. This deal means that Priceline customers can arrange
their entire vacation from one site.
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