Why Priceline Bought Kayak
Nov 12th 2012 4:15PM
Updated Nov 13th 2012 10:06AM
While there's little doubt that priceline.com (NAS: PCLN) paid a premium when it bid $1.8 billion for recently public Kayak Software (NAS: KYAK) , there's value in the search data Kayak possesses. Think about it. By querying every type of database imaginable in the quest for deals, Kayak's engine has built a storehouse of travel intelligence not unlike what Google (NAS: GOOG) has created in its indexing of the Web, and that's bad news for incumbents Orbitz Worldwide (NYS: OWW) and Expedia (NAS: EXPE) . Find out more in the video below.
While data is no doubt driving this buy, Internet software and services are being consumed in radically different ways and on new and increasingly mobile devices. Priceline should benefit from Kayak's popular mobile app, but will it be enough to put the company on the right side of the mobile revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
The article Why Priceline Bought Kayak originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google at the time of publication. Check out Tim's web home, portfolio holdings and Foolish writings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader. The Motley Fool owns shares of Google. Motley Fool newsletter services have recommended buying shares of Priceline and Google. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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