NEW YORK (TheStreet) -- Priceline.com's (PCLN) $1.8 billion deal to purchase Kayak Software (KYAK) came as a big surprise, but on closer inspection looks like a smart move for the online travel giant.
The deal, which coincided with Kayak's third-quarter-earnings, was certainly a bolt out of the blue. TheStreet, for example, had scheduled a post-earnings interview with Kayak CEO Steve Hafner on Thursday, but that was abruptly cancelled by the company when news of the acquisition hit.
In typical M&A fashion, Priceline shares slipped down 1.26% to $619.99 shortly after market open on Friday, while Kayak's stock climbed 26.61% to $39.39. Analyst reaction to the deal, though, is overwhelmingly positive.
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