Why OpenTable Inc Shares Skyrocketed Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of OpenTable Inc soared 47% today after Priceline Group agreed to acquire the restaurant reservation company for $2.6 billion.
So what: The all-cash deal values OpenTable at $103 per share and represents a 46% premium to its closing price on Thursday. Priceline is making the move to complement its other vacation bargain-hunting services but, judging by its own 2% drop today, Mr. Market isn't too thrilled with the price that management is paying to do it.
Now what: The transaction is expected to close in the third quarter of 2014, subject to customary closing conditions. "OpenTable is a great match for The Priceline Group," Priceline President & CEO Darren Huston said. "They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers. We look forward to helping the OpenTable team accelerate their global expansion, increase the value offered to their restaurant partners, and enhance the end-to-end experience for our collective customers across desktop and mobile devices." So while OpenTable shares are likely all popped out at this point, Priceline's newly bolstered portfolio might be worth looking into.
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The article Why OpenTable Inc Shares Skyrocketed Today originally appeared on Fool.com.Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends OpenTable and Priceline Group. The Motley Fool owns shares of Priceline Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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