Slate reports that Priceline, the discount travel site, will spend $2.6 billion to acquire OpenTable, the online restaurant reservation service.
According to the story, Priceline hopes that the move will help it "distinguish itself from other prominent travel sites like Expedia and to capitalize on the dining whims of the millions of weary and hungry travelers who already use Priceline's services."
One interesting set of facts: "OpenTable works with more than 31,000 establishments worldwide, of which investment research firm Morningstar reports that 23,900 are in the U.S. This geographic distribution is attractive to Priceline, which has a strong international presence but has been working to grow its domestic network. According to the Wall Street Journal, 80 percent of Priceline's revenue comes from abroad and 80 percent of OpenTable's from the U.S."
According to the story, Priceline hopes that the move will help it "distinguish itself from other prominent travel sites like Expedia and to capitalize on the dining whims of the millions of weary and hungry travelers who already use Priceline's services."
One interesting set of facts: "OpenTable works with more than 31,000 establishments worldwide, of which investment research firm Morningstar reports that 23,900 are in the U.S. This geographic distribution is attractive to Priceline, which has a strong international presence but has been working to grow its domestic network. According to the Wall Street Journal, 80 percent of Priceline's revenue comes from abroad and 80 percent of OpenTable's from the U.S."
- KC's View:
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Wow. I love Priceline when it comes to making hotel reservations. And I use OpenTable a lot. It will be fascinating to see if they can find synergies that will allow me to use both services in a creative and seamless way.
