Nov. 6, 2015, 1:32 PM
- Priceline (PCLN -1.6%) and Expedia (EXPE -2.9%) have sold off after TripAdvisor (TRIP -6.8%) posted a Q3 miss and cut its full-year revenue growth forecast. On its earnings call (transcript), TripAdvisor stated the rollout of Instant Booking (allows bookings to be made on TripAdvisor's site/apps, Priceline recently signed up) is affecting near-term revenue by pushing out revenue recognition relative to referral (click-based) payments.
- Also: Priceline says it's uninterested in making a rival bid for top vacation rental marketplace HomeAway (AWAY -6.2%), which recently agreed to a $3.9B sale to Expedia. HomeAway has fallen to $37.73, a price close to what Expedia's cash/stock offer is currently worth.
- TripAdvisor's management faced earnings call questions about the impact of Instant Booking on monetization and conversion rates. It insisted IB, and the the Priceline deal in particular, will be a major positive. "The reason Priceline enables us to accelerate our [Instant Booking] rollout globally is because of the rich content that they have on 400,000 plus properties all around the globe, and by that I mean they are able to successfully take bookings on 400,000 plus properties in multiple, multiple, different language, processing payments for multiple different credit card by multiple different banks."
- At the same time, management is taking a cautious approach to modeling international IB sales. "[W]hile we have the decent amount of experience now in U.S. and U.K., we don't quite know how [Instant Booking] is going to flowing in, in France, in Japan, all throughout age, all throughout all the other markets that we look to roll it out in."
- Oppenheimer's Jed Kelly has downgraded TripAdvisor to Perform, citing slightly weaker hotel trends and the "monetization drag" Instant Booking could have in the near-term. Nonetheless, he thinks the Priceline deal "should eventually enhance earnings long term, especially as revenue leakage and improving mobile monetization eventually equates to higher revenue per hotel shopper."
- Priceline and TripAdvisor rallied last week in response to Expedia's Q3 results and full-year guidance hike. Priceline reports on Monday morning.
Nov. 4, 2015, 5:33 PM
- Expedia (NASDAQ:EXPE) is now up strongly after hours in response to news it's buying HomeAway (NASDAQ:AWAY) for $3.9B. HomeAway has risen to $39.26 - at Expedia's current trading levels, the company's cash/stock payout for HomeAway is worth $39.06/share. (PR)
- Expedia CEO Dara Khosrowshahi: "We have long had our eyes on the fast growing ~$100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years ... we look forward to partnering with them to accelerate their shift from a classified marketplace to an online, transactional model to create even better experiences for HomeAway's global traveler audience and the owners and managers of its 1.2 million properties around the world."
- The deal is partly seen as an attempt to counter the rise of home/apartment rental marketplace Airbnb (Pending:AIRB), which was reportedly valued at an eye-popping $25.5B in a June round. Airbnb has long been seen a threat to HomeAway (though HomeAway has insisted it differs from Airbnb due to its focus on secondary home rentals), and Expedia admitted on its Q3 earnings call Airbnb could exert price pressure in some hotel markets by increasing available room inventory.
- Earlier: Expedia buying HomeAway for $3.9B
Nov. 4, 2015, 4:21 PM
- Expedia (NASDAQ:EXPE) is buying leading vacation rental marketplace HomeAway (NASDAQ:AWAY) for $3.9B in cash and stock, or $38.31/share based on Expedia's Tuesday close.
- Expedia will pay $10.15/share in cash and issue 0.2065 shares for each HomeAway share. The deal is expected to close in Q1 2016.
- AWAY is halted. EXPE is up fractionally after hours.
Jun. 5, 2015, 11:29 AM
- An acquirer could pay $45/share or more for HomeAway (NASDAQ:AWAY), argues Piper's Michael Olson. He thinks the online vacation rentals marketplace is especially an appealing target following its recent deal with Priceline's Kayak metasearch unit. Priceline is seen as the most likely suitor, but Expedia and TripAdvisor are also considered possibilities.
- HomeAway is now up 10% since the Kayak deal was announced. SA author Sramana Mitra argued last month Priceline could bid for HomeAway.
Dec. 1, 2014, 2:37 PM
- Down as much as 3.3% earlier today thanks to a tech selloff, HomeAway (AWAY - unchanged) has erased its losses thanks to a dealReporter column stating the company could be an M&A target.
- The vacation rental platform's shares are down 23% YTD. They sold off a month ago due to the soft Q4 guidance provided with a Q3 beat.
Jun. 13, 2014, 4:10 PM
- Add HomeAway (AWAY +7.2%) to the list of Web local services providers to have shot higher on hopes Priceline's $2.6B acquisition of OpenTable will lead to more deals.
- HomeAway's vacation rental platform would complement Priceline/Expedia's hotel bookings offerings. The company also competes with TripAdvisor, which competes against Priceline's Kayak unit (albeit while acting as a Priceline referral source) and just bought European OpenTable rival LaFourchette.
May 1, 2014, 3:34 PM
- TripAdvisor (TRIP +3.2%) is continuing its recent M&A spree by acquiring Vacation Home Rentals, a site that lists 14K+ rental properties worldwide. Terms are undisclosed.
- The purchase follows last year's acquisition of Spanish vacation rentals site Niumba.com, and represents an escalation of TripAdvisor's competitive challenge to market leader HomeAway (AWAY +1.8%). TripAdvisor claims to feature 550K+ rental properties; HomeAway claims 625K+ listings.
- TripAdvisor's Q1 report is due on May 6.
Mar. 5, 2014, 5:26 PM
- HomeAway (AWAY +0.3%) has acquired Glad to Have You, a top developer of private-label apps that allow property owners/managers to interact with guests. Terms for the all-cash deal are undisclosed.
- Glad offers two solutions: GladOwners, a basic offering that historically goes for $100/year, and GladProfessional, a high-end offering that provides more scale and a handful of extra features, including push notifications and guest analytics.
- HomeAway is offering GladOwners for free to customers. GladProfessional, currently used by 300+ property management companies, won't see its pricing change.
- The purchase comes on the heels of HomeAway's $198M acquisition of Australian vacation rental marketplace Stayz.
Dec. 4, 2013, 7:36 AM| Dec. 4, 2013, 7:36 AM
Nov. 6, 2013, 2:33 PM
- HomeAway (AWAY -3.5%) acquires a 55% stake in Kiwi vacation rental website Bookabach in an all-cash deal. Terms were undisclosed.
- Bookabach and Bookastay, its Australian affiliate, list more than 8K properties.
- The move is part of an expansion into East Asia by HomeAway which includes the acquisition of Travelmob.com in Aug., a distribution partnership with hotel/flight aggregator Wego.com, and a minority investment in Chinese vacation rental site Tujia.com.