Preiceline is buying upstart Kayak for a hefty $1.8 billion. That almost two Instagrams!
The giant online travel site Priceline announced last week that it’s spending a whopping $1.8 billion to buy upstart Kayak. (If you do your math the Silicon Valley way, that's almost two Instagrams — Facebook bought the photo-sharing app for $1 billion earlier this year).
This means that Kayak, which staged at multi-million-dollar IPO in July, is no longer a public company. Is that a good deal for shareholders? One law firm in Southern California doesn't think so. But that could have been predicted.
Within a day after Connecticut-based Priceline and Kayak announced the deal, Robbins Umeda, a San Diego firm that specializes in shareholder lawsuits, launched what it’s calling an “investigation” of the proposed acquisition.
Robbins Umeda does this all the time, advising shareholders that they have the right to file class-action lawsuits if mergers and acquisitions rob them of gains.