Priceline will eat up OpenTable for a $2.6 billion tab

The companies share the same customers, Priceline CEO says

Online travel site Priceline is adding restaurant bookings to its menu of offerings with the US$2.6 billion all-cash acquisition of OpenTable. The deal has been approved by the boards of both companies and is expected to close in the third quarter.

"OpenTable is a great match for The Priceline Group. They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers," Priceline president and CEO Darren Huston said in a statement Friday.

OpenTable books more than 15 million dining seats per month and covers some 31,000 restaurants, Priceline said.

The $2.6 billion price tag represents a 46 percent premium over OpenTable's closing share price on Thursday.

Priceline has differentiated itself from rivals such as Expedia by giving customers the opportunity to negotiate prices. Shares of Priceline fell 1.24 percent in early trading Friday to $1,210.28.

OpenTable had been on Priceline's radar for some time, Huston said Friday during a conference call. The price tag is justified as OpenTable will bring an "appropriate level of return" to Priceline over the long term, he added.

"Their business model is very similar to ours," he said. In addition, Priceline and OpenTable essentially share the same customers, as travelers are also diners, he said. "We believe there's opportunity to cross-promote to the same customer base."

Priceline should also be able to help OpenTable expand internationally, Huston said.

The combined company may soon face fresh competition from Reserve, which is backed by Garrett Camp, co-founder of ridesharing service Uber. Reserve's website is currently bare-bones but teases that "a better dining experience is coming."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicesapplicationsOpenTablesoftwarecloud computingindustry verticalsinternetMergers and acquisitionsInternet service providersPriceline

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Most Popular Reviews

Deals on Good Gear Guide

Deals on Good Gear Guide

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.


Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?