Who knew these two crazy kids would end up together? Travel site Priceline announced it’s going to pay its fellow travel search company Kayak $1.8 billion in both stock and cash. With this kind of speedy relationship, it makes you wonder if anyone bothered with a pre-nup.
The Wall Street Journal says Priceline will pony up about $500 million in cash and another $1.3 billion in equity and stock options. After the merger is said and done, Kayak’s management will stay on as just one of the gang in Priceline’s group of other companies.
Kayak’s site helps customers shop and compare different options for flights, hotels and rental cars, and sending online shoppers to online travel agencies like Priceline and its competitors like Expedia and Orbitz. That’s how Kayak earns its much of salt, referral fees. Which kinda means Expedia will be giving Priceline money.
Priceline seems pleased with its choice in bride, with CEO Jeffery H. Boyd saying in a statement:
“Kayak has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers.”
Sounds like true love.
Priceline to Buy Kayak in $1.8 Billion Deal [Wall Street Journal]