Priceline buying OpenTable for $103 per share


The all-cash deal valuing OPEN at $2.6B is expected to close in Q3. The price is a 46% premium to last night's close.

“The kind of work that we do day-to-day is very similar,” says Priceline (PCLN) CEO Darren Huston. “It’s just a different marketplace.”

A conference call to discuss is set for 8:30 ET.

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Comments (7)
  • Mark Krieger
    , contributor
    Comments (6373) | Send Message
     
    damn....not a very pleasant thing to wake up to when you are short the shares.
    13 Jun 2014, 08:38 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (6373) | Send Message
     
    PCLN paid too much...60 times forward earnings is unheard of
    13 Jun 2014, 08:50 AM Reply Like
  • Envoy Global Research
    , contributor
    Comments (586) | Send Message
     
    Why only $2.6 billion? Why not $18 billion?
    13 Jun 2014, 08:57 AM Reply Like
  • Owen
    , contributor
    Comments (720) | Send Message
     
    For a fraction of that cost, Priceline could have set up a similar or better service. It's not like Priceline will benefit from the "OpenTable" brand name - most have never even heard of it.

     

    Business cycle peaks see the oddest mergers and acquisitions.
    13 Jun 2014, 09:11 AM Reply Like
  • TAS
    , contributor
    Comments (3887) | Send Message
     
    I love it....name your price restaurants!
    13 Jun 2014, 09:15 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (6373) | Send Message
     
    PCLN got taken to the cleaners by OPEN.

     

    spending like a drunken sailor for sure
    13 Jun 2014, 11:11 AM Reply Like
  • digitalguy
    , contributor
    Comments (30) | Send Message
     
    I listened to the conference call. This does make alot of sense to me as this is a natural extension for Priceline, who can really help Open Table grow, especially internationally. I can't really comment on the price, although there is always a premium for an acquisition and I do believe that the acquisition certainly makes Open Table much more valuable. In ten years it isn't going to matter whether tyey paid a billion extra for it... It opens Priceline to a wider share of traveler's dollars as well as the regular restaurant business. There are possible extensions to other attractions while traveling. The analyst questions were generally positive, no hard ball questions. The only negative that I see is that there will be upfront and continuing expenses to build up this business in advance of the revenue.
    15 Jun 2014, 09:30 AM Reply Like
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