Priceline buys Kayak
Because Kayak’s key feature was price comparison, we’ve created a handy chart to compare the size and popularity of the two travel tech companies. While Kayak is dwarfed in terms of pure revenue (it went public just this summer; Priceline’s IPO was in 1999), its innovation and creative marketing made it a darling in the online travel world.
At a travel conference a handful of years ago, Priceline CEO Jeffery Boyd disparaged the value proposition of metasearch in travel, but today Priceline agreed to buy Kayak for $1.8 billion. In years past, even Kayak CEO Steve Hafner flippantly scoffed at metasearch as a low-margin, tough business, but much has changed.
Arranged in chronological order, from start of Kayak’s IPO roadshow until today: – Kayak hits the road with $100 million IPO try – Kayak downplays threat from Google Travel in IPO materials – Kayak gets its $1 billion valuation: raises $91 million at $26 a share – Kayak IPO maiden flight: Will it take off?
A bomb just dropped in the online travel world: Priceline the world’s largest travel company, has agreed to acquire travel meta-search company Kayak, for about $1.8 billion. Priceline’s shares are down about 1.7 percent in extended trading, while Kayak’s up about 1.6 percent. Major deal points: – Priceline is offering $40 per share for Kayak.