Priceline Inc. is acquiring OpenTable, the most popular restaurant booking service for a whopping $2.6 billion. The deal is said to expand the reach of Priceline Inc. both locally and internationally.
Priceline is one of the biggest online travel agency in the United States, and the company has been very successful in making booking easier earlier, but for a different sector in the industry. Today, the OpenTable acquisition would give them the ability to explore new opportunities in the restaurant booking industry.
Priceline is taking over the company with over 53 percent of the original stock price, with $103 per share for OpenTable. OpenTable’s revenue has been on the rise for sometime now. The restaurant booking service, is said to generate a revenue of about $226 million this year.
This deal of $2.6 billion is already gaining huge support from the share holders and top executives at OpenTable. OpenTable’s strong position in the market will give a market boost for Priceline.
OpenTable became operational in the year 1998 and has been helping restaurants to accept reservations via their service. OpenTable currently has over 31,000 restaurants with more than 15 million diners a month.