Seeking Alpha

OpenTable acquires rival platform, shares jump ahead of Q2 report

  • OpenTable (OPEN +7.2%) is buying Rezbook, the restaurant reservation platform developed by InterActiveCorp's (IACI -1.7%) UrbanSpoon restaurant app unit.
  • Rezbook was once feared as a serious rival to OpenTable, but the platform has made limited headway in the face of OpenTable's superior network effects. It currently has ~2K restaurant customers to OpenTable's 28K+.
  • As part of the deal, OpenTable is becoming the North American reservation platform for Urbanspoon's popular apps.
  • The deal comes as Yelp and Groupon both make efforts to encroach on OpenTable's turf.
  • OpenTable's Q2 results arrive this afternoon.
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Comments (2)
  • David Jackson
    , contributor
    Comments (1278) | Send Message
    Any risk of anti-trust issues?
    1 Aug 2013, 11:33 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1070) | Send Message
    Good question. I could see regulators taking a look. But it's a relatively small deal, and OPEN will point to competition from YELP, GRPN, and several startups.
    1 Aug 2013, 03:49 PM Reply Like
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