Why Priceline Plucked Kayak
One of the world's largest online travel agents, Priceline is well positioned for the mobile boom, something which can only be helped by the acquisition of Kayak.
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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