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Bloomberg Article Shines Spotlight on Priceline and Tripadvisor
Two internet tech companies are trending today after Bloomberg writers Tara Lachapelle and Rani Molla wrote an article speculating that industry titan Priceline Group Inc (NASDAQ:PCLN) could potentially acquire Tripadvisor Inc (NASDAQ:TRIP). In the article, the writers note that Priceline shares have been flat since 2014 and that many of the big industry takeover candidates have already been acquired, including Booking.com, Kayak, HomeAway, Orbitz, and Travelocity. Seeing as TripAdvisor is one of the industry’s last major public travel take-over candidates in the United States, the authors speculate that Priceline and competitor Expedia Inc (NASDAQ:EXPE) may both have their eyes on TripAdvisor. With TripAdvisor shares down by 16% year-to-date, the time could be ripe for one of the two giants to potentially make a play. An acquisition wouldn’t be cheap, however, given TripAdvisor’s current 34-times TTM EBITDA valuation. Stephen Mandel’s Lone Pine Capital was a top shareholder of Priceline Group Inc (NASDAQ:PCLN) on March 31, while Jonathon Jacobson‘s Highfields Capital Management was a top shareholder of Tripadvisor Inc (NASDAQ:TRIP).
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