Momondo CEO Exits Company as Acquisition by Kayak Closes
Skift Take
It’s surprising that Momondo Group CEO Hugo Burge would depart the moment the acquisition of his brands by Priceline Group would close. But Kayak’s promise of boosted marketing spend suggests the Momondo and Cheapflight brands will live on.
It's a meeting of rivals who are suddenly now on the same side. The product teams of Kayak and Momondo, two long-time price-comparison search services, are meeting for the first time on Monday.
There's a notable absence at the meeting, though. The biggest immediate change is that longtime Momondo Group CEO Hugo Burge stepped down Monday morning. In a comment on Twitter, he says: "I’m rooting for our team, now part of Kayak, to carry on the fight for better travel search."
The two sides had been unable to meet until regulators approved parent company Priceline Group's acquisition of UK-based Momondo for about $550 million. Watchdogs approved the deal late last week.
The UK-based company will become part of the Kayak operation, which the Priceline Group acquired in 2013 for $1.8 billion.
Skift exclusively reported in January that Kayak-Momondo deal talks were underway.
Kayak chief executive Steve Hafner says in an interview that the Momondo Group brands will report to him but will retain their offices in the UK, Copenhagen, and Boston.
Hafner hopes Momondo will help the operation's push into new markets. To achieve that, he expects to increase the marketing dollars that Momondo Group was already spending to promote its brands.
The spending will ha
