Digital

Guess who stands to make biggest from Kayak’s $1.8 billion sale? The CTO

@rafat

Nov 09, 2012 9:46 am

Skift Take

It isn’t the CEO, but the technical brains that wins the biggest. One for the engineering talent on this one.

— Rafat Ali

Win an All-Expenses Paid Trip to NYC to Tour the Future of Travel


Boston Business Journal’s Kyle Alspach has run the numbers, based on the various stockholders in Kayak, and some interesting winners in its proposed $1.8 billion sale to Priceline:

– Boston-based VC firm General Catalyst Partners, largest Kayak shareholder, stands to receive $417 million. It owns 10.4 million shares in Kayak following the IPO, a 26.7% stake. The firm actually increased its ownership by 300K shares during the process, reportedly to make up for the tepid initial response from institutional investors in the IPO deal.

– Sequoia Capital holds 16 percent of Kayak (worth $251 million), Accel Partners holds 12 percent ($195 million) and Oak Investment Partners holds 10.5 percent ($166 million).

– And on the management side, co-founder and CTO Paul English, the technical brains behind Kayak’s success, stands to receive $122 million through his 7.8 percent stake, while Kayak CEO and co-founder Steve Hafner stands to receive $94 million via his 6 percent ownership.

This of course won’t all be in cash: in fact most of it won’t be, as Priceline’s $1.8 billion price is only about $500 million in cash and $1.3 billion in equity and stock options based on some restrictions.

Tags: ,

Follow @rafat

Next Up

More on Skift

International Air Traffic Snapshot for April 2014
Bali’s Bid to Become a Bitcoin-Friendly Vacation Destination
American Airlines and Orbitz Fight is Different This Time Around
Free WiFi Tops Business Travelers’ List of Hotel Must-Haves