Mon, Jun. 6, 4:04 PM
- With Kayak, Travelocity, HomeAway, and Orbitz having all been acquired, a Priceline (NASDAQ:PCLN) purchase of TripAdvisor (TRIP +4.9%) could be the online travel industry's next big M&A transaction, argue Bloomberg's Tara Lachapelle and Rani Molla.
- The authors highlight the recent stagnation of Priceline's shares, and the fact TripAdvisor is well off its highs. Some challenges to a deal: TripAdvisor currently sports a $10.4B market cap and has a somewhat lofty valuation (32x a 2017 EPS consensus of $2.26), and TripAdvisor's ties to John Malone's Liberty Interactive (which controls Priceline archrival Expedia) could get in the way.
- Though still down 17% YTD, TripAdvisor rallied to its highest levels since January today. Volume (3.05M shares) was well above a 3-month daily average of 2.16M.
Dec. 22, 2015, 12:06 PM
- Vague M&A chatter is once more providing a lift to YELP. Priceline (NASDAQ:PCLN) has been mentioned as a suitor this time around.
- Volume is moderate thus far: 1.01M shares vs. a 3-month daily average of 2.85M. 9.5M shares (17% of the float) were shorted as of Nov. 30.
- The rumor comes less than a week after Yelp and Priceline-owned OpenTable confirmed they've ended a multi-year partnership. Yelp bought OpenTable rival SeatMe in 2013.
- 3 months ago: Yelp higher amid vague M&A chatter, call-buying
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.
Sep. 3, 2015, 11:52 AM
- Priceline (PCLN +1%) is acquiring AS Digital, an Australian provider of restaurant table/reservation management software called ResPAK and a restaurant-booking site known as bookarestaurant.com.Terms are undisclosed.
- Priceline states ResPAK is used by thousands of restaurants in 40+ countries. It plans to integrate AS Digital with OpenTable (acquired last year), and declares the purchase will "accelerate OpenTable's entry into the Australian market and expand its operations in Japan and across the Asia Pacific region."
May 22, 2015, 9:09 AM
- Ctrip (NASDAQ:CTRP) has jumped to $76.00 (its 52-week high) in premarket trading following news it's part of an investor group that has bought a 62.4% stake in smaller/struggling rival eLong from Expedia, and that it's partnering with Expedia in "specified geographic markets." In a PR about the move, Ctrip states it spent $400M to buy a 37.6% stake.
- Archrival Qunar (NASDAQ:QUNR), whose shares were up 86% YTD going into today with the help of good earnings news, has fallen to $50.50.
- Ctrip's alliance with Expedia might not sit well with Priceline (NASDAQ:PCLN), which last year struck a deal to buy up to a 10% stake in Ctrip.
Feb. 19, 2015, 2:48 AM
- Prior to the release of its Q4 results this morning, Priceline (NASDAQ:PCLN) has been reported to be planning a $20M acquisition of hotel-booking startup Rocketmiles, sources told WSJ.
- The purchase would help Priceline promote lodging bookings through its network, competing with hotels that offer their own rewards to lure users to their websites.
- The deal comes as Expedia seeks regulatory approval to buy rival Orbitz for $1.6B.
Jun. 23, 2014, 1:16 PM
- Sources tell dealReporter OpenTable (OPEN +0.1%) talked with bidders other than Priceline (PCLN -0.1%) before accepting the online travel giant's $2.6B bid.
- Though a higher offer is seen as unlikely, one source thinks Yahoo (set to receive an Alibaba IPO windfall) could make a bid. OpenTable is currently 1.9% above Priceline's $103/share offer price.
- Yelp (YELP +3.6%), which blasted off after Priceline/OpenTable was announced, is rallying again. Volatile restaurant deals microcap LiveDeal (LIVE +9.3%) is also up strongly.
- Previous: Street commentary on Priceline/OpenTable
Jun. 13, 2014, 2:31 PM
- Priceline's (PCLN -2.8%) market cap has fallen by $1.6B since announcing a $2.6B deal to buy restaurant reservation leader OpenTable.
- With shares of many other local services firms following OpenTable higher - Yelp is up 13.8% - the Street is betting Priceline's move will spark further M&A activity, with some of it possibly coming from Priceline.
- "We see this deal as likely part of Priceline's move into offering a much broader range of local e-commerce services to what is a very attractive customer set," writes RBC (Outperform).
- OpenTable's platform supports 31K+ restaurants and seats 15M+ diners/month. The company towers over the U.S. market, but is seeing growing competition from Yelp, TripAdvisor (TRIP - just bought European leader LaFourchette), Groupon, and other firms going after restaurants unhappy with OpenTable's pricing.
- In spite of the steep price tag - Priceline is paying 9.9x 2015E sales - analyst commentary is mostly positive. Not surprisingly, much of it centers around cross-selling opportunities between OpenTable and Priceline's travel bookings offerings.
Jun. 13, 2014, 8:07 AM
- 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.
Mar. 13, 2013, 12:55 PM
Jan. 8, 2013, 2:52 PMThe FTC has signed off on Priceline's (PCLN) $1.8B acquisition of Kayak (KYAK). Though the combined clout of Priceline/Kayak in the online travel search/bookings space will be huge, the presence of competition from Expedia, Google, and others seems to have mollified regulators. Priceline has said Kayak will be run as an independent company led by its current management. | Jan. 8, 2013, 2:52 PM
Nov. 8, 2012, 4:31 PM
Expedia (EXPE) -4.3% AH on news Priceline (PCLN) is acquiring Kayak (KYAK). Investors are likely worried the direct integration of Priceline's travel listings and bidding platform with Kayak's search engine will hurt Expedia's market share. TripAdvisor (TRIP) -3.3% AH, likely on concerns the Priceline deal could end its travel reviews partnership with Kayak. Priceline is holding a call to discuss the merger (webcast).| Nov. 8, 2012, 4:31 PM
Nov. 8, 2012, 4:23 PM
Priceline (PCLN) is acquiring Kayak Software (KYAK) for $40/share, or $1.8B. The price represents a 29% premium to Kayak's close today. 1/3 of the purchased will be financed via cash, and 2/3 via stock. Priceline expects the deal to close in Q1, and have a minimal impact on 2013 EPS. Regulators may take a close look. PCLN -1.5% AH. KYAK is halted until 4:30 p.m. (PR)| Nov. 8, 2012, 4:23 PM | 1 Comment
Mar. 27, 2012, 11:14 AM