Priceline, Expedia and Alibaba Add to Their Mammoth Acquisition War Chests
Although valuations are soaring in the travel industry and beyond, have no fear that the Priceline Group and Expedia Inc. wouldn't be able to keep up with the market: Both are well-positioned to keep on acquiring companies as they offer senior notes to boost their bankrolls.
And then there's Alibaba, which has a travel business and just raised $25 billion in the world’s largest IPO. At the end of the second quarter, Alibaba had about $8.5 billion in cash and equivalents at its disposal for acquisitions and other corporate purposes.
The Priceline Group, which acquired OpenTable for $2.6 billion this summer and is investing $500 million in China's Ctrip, is readying an underwritten public offering of senior notes to be used for general corporate purpose, including share repurchases and acquisitions.
The pricing and amount of the Priceline Group offeringhave not been determined, but however much the online travel company raises, rest assured that it would certainly replenish and/or bolster its war chest.