4 ms·
My interpretation is the company is being bought for future growth, not the scaling to date. 15 million diners per month * 12 months = 300 million dining exper
by mathattack 12y ago
My interpretation is the company is being bought for future growth, not the scaling to date.
15 million diners per month * 12 months = 300 million dining experiences. Priceline is paying $8 for each of these seatings. That seems like a lot for an organization that is rent-seeking. It starts to make sense if Priceline can convert even a small fraction of them into hotel and airplane buyers. At that point the deal makes a lot of sense.
- trhway 12y ago>It starts to make sense if Priceline can convert even a small fraction of them into hotel and airplane buyers i think it is other way - the "flight+hotel+rental" package will be extended with breakfast/lunch/diner options.
- mathattack 12y agoThat doesn't work for how locals use OpenTable, but it could work for tourists who come in for a vacation. (Hence the value to Priceline)