Priceline Buys Kayak Software, Best Buy Speculation: M&A Recap
Priceline.com Incorporated (NASDAQ:PCLN) purchases Kayak Software Corporation (KYAK) at $40 per share, or a total amount of $1.8 billion. That price marks a 29 percent bonus to Kayak’s Thursday close. Shares of Expedia (NASDAQ:EXPE) dipped after hours Thursday on the news, but have rebounded today in mid-afternoon trading. Investors might have worried that the direct joining of Priceline’s travel listings and bidding platform with Kayak’s search engine could impact Expedia’s market share. TripAdvisor (NASDAQ:TRIP) shares mirrored those of Expedia, perhaps on worries that the Priceline transaction might put an end to its travel reviews partnership with Kayak.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
Best Buy’s (NYSE:BBY) founder Richard Schulze might offer a lower amount for the company than the $24 to $26 range he suggested in August, says Reuters, as the recent sharp decline in shares fuels investor speculation. If the rumors are accurate, such a bid could value the deal between $8.16 billion and $8.84 billion, or $10.9 billion including debt. An offer is not anticipated before December.