BedandBreakfast.com delivers value to HomeAway
The acquisition of Bedandbreakfast.com by Homeaway is HomeAway’s first online travel acquisition of 2010. Is there more to come?
Exciting news from one of online travel’s hotbeds – Austin TX. It looks like HomeAway is using its pre-IPO stock to add complementary businesses. In the case of B&B.com, we hypothesize the fit makes sense because B&B.com is: (also) largely a listing-driven business, (B&B.com also has a burgeoning gift certificate business), the bed and breakfast sector is also fragmented like vacation rentals, B&B.com is the market leader, B&B.com is profitable, has a very good management team and integrating B&B.com won’t distract the HomeAway team.
HomeAway kept it quiet at Goldman Sachs
Homeaway’s CFO did not hint about this at the Goldman Sachs conference – as expected from a company waiting on deck for their IPO.
The B&B.com team has been quietly focused on executing their business for the last few years and they have done an excellent job! Mazel tov to Eric, John and the rest of the team!
Related posts & articles:
IPO rumor dismissed by HomeAway
Super Bowl Advertising Homeaway Goes Downfield for BedandBbreakfast.com Acquisition
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3 Responses
why do all the best comments come via email (rather than as comments on the blog
?
comment 1: yes, Homeaway has raised a lot of investment capital ($480M to be precise – http://bit.ly/bedandbreakfast). But no, Eric and John aren’t crazy to take Homeaway shares that sit ‘behind’ all that ‘preferred’ investment capital (especially since given Eric & John have been through this scenario before. Eric sold bedandbreakfast.com to WorldRes previously). It’s highly probable Homeaway goes public, at which point the ‘preferred’ part goes away.
comment 2: yes, Tnooz rocks – check out their post – complete with cheeky title from Dennis Schaal – http://bit.ly/tnoozbandb
comment 3: yes, interesting sub current is what this means, longer term, for TripAdvisor. If anything. The B&B.com acquisition doesn’t impact TripAdvisor directly, but FlipKey & TripAdvisor’s vacation rental initiative is likely the largest and most plausible threat to Homeaway’s continued market domination.
take two on comment 2. here’s the link to tnooz’s post – http://bit.ly/dm0r3X
a lesson for those that email me comments instead of posting them directly…i’m a crappy transcriber
this will help us get even cheaper rates and better options with more connectivity,great.