Market Overview

Priceline To Acquire OpenTable At Massive Premium

Priceline To Acquire OpenTable At Massive Premium
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OpenTable (NASDAQ: OPEN) has been halted following the announcement that Priceline (NASDAQ: PCLN) will be acquiring the company for $103 per share.

The triple digit share price is 46.2 percent higher than OpenTable’s Thursday close. Priceline confirmed the deal shortly after Dow Jones broke the story (before shares were halted).

What is Priceline paying for? A platform for users to book restaurant tables online. OpenTable also sells software to restaurants to help them manage operations. The acquisition will expand Priceline’s reach with the 15 million customers and 31,000 restaurants that use OpenTable each month.

Related: 10 Top Stocks Under $10 Right Now

Priceline CEO Darren Huston commented on the acquisition, “They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers.”

Shares of OpenTable traded momentarily before the halt and were last up 13.12 percent, still far below the acquisition price. Trading is scheduled to resume at 8:30 a.m. ET and shares are likely to record an additional double digit jump.

The $2.6 billion acquisition is also having an impact on several peers, as the massive premium will change valuation models in the industry and increase the possibility of a takeover.

  • Yelp (NYSE: YELP) shares are up 9.95 percent
  • Groupon (NASDAQ: GRPN) shares are up 9.74 percent
  • LiveDeal (NASDAQ: LIVE) shares are up 11.84 percent
  • Angie’s List (NASDAQ: ANGI) shares are up 6.28

Shares of Priceline are mostly unmoved on the news, last up 0.65 percent to $1,226.

Posted-In: Darren HustonNews Restaurants M&A Hot General Best of Benzinga

 

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