Jung-Yung Jonathan Chang
Tue, Jun. 21, 7:51 AM
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.
Mon, Mar. 14, 10:45 AM
- Buyout rumors making the rounds with traders have helped TripAdvisor (TRIP +7.2%) log major gains in early trading. Priceline has been mentioned as a potential suitor.
- 1.6M shares have already been traded; the 3-month daily average is 2.2M. TripAdvisor jumped last month after delivering a healthy Q4 beat, but remains 28% below a 52-week high of $94.00 (set in July).
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.
Feb. 2, 2015, 6:40 PM
- Acquisition-hungry TripAdvisor (NASDAQ:TRIP) has bought ZeTrip, the developer of personal travel journal app Rove. Terms are undisclosed.
- Rove has only seen modest uptake - Google Play puts its Android app installs in the 10K-50K range. TripAdvisor has already made several acquisitions meant to expand the features/services provided to its user base.
- Q4 results arrive on Feb. 11.
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.
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.
Oct. 15, 2013, 6:56 AM
- TripAdvisor (TRIP) buys hotel review site Oyster.com for an undisclosed amount.
- The website will be tucked into the company's Smarter Travel Media business.
Jun. 19, 2013, 7:11 AM
TripAdvisor (TRIP) buys mobile content provider GateGuru for an undisclosed amount. The deal will add more resources for the company's suite of flight products.| Jun. 19, 2013, 7:11 AM
May 7, 2013, 1:16 PM
Another day, another travel bookings-related acquisition for TripAdvisor (TRIP -0.5%): the travel reviews leader has acquired Madrid-based vacation rentals site Niumba.com. Niumba lists 230K+ properties on its site, over 120K of which are in Spain. (Cruise Critic) (Jetsetter.com)| May 7, 2013, 1:16 PM
May 3, 2013, 2:19 PM
TripAdvisor (TRIP +3.5%) continues its M&A spree, buying "key technology and talent" from former cruise booking site CruiseWise. The assets will be integrated with TripAdvisor's Cruise Critic reviews/bookings site. TripAdvisor bought luxury hotel bookings site Jetsetter.com in April, and travel recommendations sharing site Wanderfly last October. (PR)| May 3, 2013, 2:19 PM | 1 Comment
Apr. 9, 2013, 4:17 PM
TripAdvisor (TRIP) acquires Jetsetter.com, a members-only site for luxury hotel bookings, from apparel deals site Gilt Groupe. Betabeat reported in October Gilt was looking for a price of $30M-$50M for Jetsetter, which hasn't lived up to lofty expectations. TripAdvisor argues Jetsetter will complement its less upscale SniqueAway hotel bookings brand; the company has been aggressively seeking out businesses that complement its travel reviews platform. (Wanderfly)| Apr. 9, 2013, 4:17 PM
Mar. 22, 2013, 2:45 PM
TripAdvisor (TRIP) acquires Tiny Post, developer of a popular iOS app that allows users to quickly add captions to photos before sharing them on social networks. TripAdvisor sees possibilities in using Tiny Post to get its users to share travel photos on the go. In October, TripAdvisor acquired Wanderfly, a site/community where users share travel recommendations.| Mar. 22, 2013, 2:45 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
Oct. 2, 2012, 12:24 PM
Aug. 14, 2012, 1:43 PM
Google's (GOOG) purchase of Frommer's reflects the search giant's recent tendency to acquire and develop the mobile/local solutions it needs, rather than rely on third parties, notes Larry Dignan. Whereas Apple (AAPL) has partnerships with Yelp, Facebook, and others, Google has proprietary offerings such as Zagat, Frommer's, Google+, and Google Wallet. Ryan Kim sees the acquisition as evidence local and travel content are converging - something that may work to the detriment of YELP and TRIP.| Aug. 14, 2012, 1:43 PM | 3 Comments