This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Priceline Announces Opentable Acquisition for $2.6 Billion Cash

NEW YORK (TheStreet) -- Priceline (PCLN - Get Report) announced Friday morning that it's going to acquire Opentable  (OPEN) for $103 per share, paying a total of $2.6 billion in cash.

For Priceline, Opentable provides "a natural extension into restaurant marketing services and a wonderful and highly valued booking experience for our global customers," said Darren Huston, the president and CEO of Priceline, in a press statement.

Priceline helps find the best prices when booking planes, hotels, cruises, cars, and vacation packages. Priceline acquired Kayak, another travel booking website, in 2012. San Francisco-based Opentable company allows users to make restaurant reservations online.

Capital Group Companies owns 13.98% of Opentable shares, T. Rowe Price owns 9.11%, while investment firm BlackRock  (BLK) hold an 8.9% stake.

Reaction to news of the acquisition has been positive. 

"We think Opentable has somewhat under-invested in traffic acquisition and conversions, and can clearly benefit from Priceline's expertise, particularly in search marketing efforts overseas," wrote RBC Capital Markets in a report led by Rohit Kulkarni. "Opentable is predominantly used by locals but with help from Priceline, Opentable could tap into the non-local market as part of the end-to-end app."

Nonetheless, Opentable could run into expansion problems abroad because of previously established competition. Domestically "Opentable has a "monopolistic" market share, particularly in N.America, but we have come across a series of private / local players in Europe (e.g. La Fourcette- acquired by Tripadvisor and Bookatable/Live Bookings) and Japan (Tabelog - operated by Kakaku.com)," wrote Kulkarni.

The deal is expected to close in the third quarter of 2014.

Shares of Opentable were surging 47% to $103.73 while Priceline was falling 2.5% to $1,195.84.

**Why Priceline's $2.6 Billion Buy of OpenTable May Be a Bargain --Written by Whalen MacHale in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
OPEN $102.95 -0.02%
PCLN $1,134.61 -0.50%
AAPL $123.22 -0.82%
FB $83.30 0.35%
GOOG $548.13 -1.30%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs