Priceline buys OpenTable for $2.6 billion

Summary:OpenTable's connections with restaurants plays well with Priceline's reservation engines for hotels and airlines.

Priceline on Friday said it will buy restaurant reservation service OpenTable for $2.6 billion in cash.

The move highlights how e-commerce players continue to scale via acquisition and expansion into more local services. OpenTable's connections with restaurants plays well with Priceline's reservation engines for hotels and airlines.

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According to a statement, Priceline's purchase pegs OpenTable at $103 a share. OpenTable closed at $70.43 a share.

Priceline CEO Darren Huston said on a conference call that OpenTable is a "natural fit" for the company and will continue to run independently. Huston said OpenTable will expand internationally, focus on lead generation and innovate on the mobile front. 

OpenTable has partnerships with more than 31,000 restaurants and seats 15 million diners a month. The company also has a strong mobile platform.

Wall Street expects OpenTable to deliver revenue of $226 million for 2014, up from $190 million in 2013. Priceline's revenue is projected to be $8.48 billion in 2014.

Topics: E-Commerce

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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