Skift Take
Vacation rentals and alternative types of accommodations is such a hot space that it is fairly clear that HomeAway is likely to be joining forces with a major player sooner rather than later. With a $3.2 billion market cap, HomeAway is relatively affordable.
In the immediate aftermath of the Priceline Group's announcement that it agreed to acquire OpenTable for $2.6 billion, the focus turned to vacation-rental behemoth HomeAway and whether it might be the next big prize that a Priceline, Expedia or Google might scoop up.
As HomeAway announces that it now hosts 1 million vacation rental listings in 190 countries through its network of sites, Skift caught up with HomeAway co-founder and CEO Brian Sharples and asked him whether he's ever discussed a merger with Priceline and whether it would make sense given Priceline Group member Booking.com's protracted drive to offer all sorts of alternative accommodations, including vacation rentals.
"Over the years we have been in contact with all the leading companies in travel and there have been lots of conversations over lots of years about lots of things," Sharples says.
In addition to speculation about Priceline, it might make sense that an Expedia acquisition of HomeAway would be a fitting answer to Priceline-OpenTable given a distribution partnership between Expedia and HomeAway that's in the works.
"HomeAway clearly occupies and leads significantly a set of accommodations that's number two to hotels." Sharples says. "All the companies competing to be the leading travel sites in the world have a natural interest in the space."
"Whether or not there ends up being a combination is about whether or not they're willing to reward HomeAway shareholders," Sharples says.
Priceline's $103 per share deal to acquire OpenTable, announced on June 13, amounted to a very hefty 46% premium over OpenTable's closing share price a day earlier.
If HomeAway, as a public company, attracted an offer with a similar premium from a Priceline, Expedia, Google, or another company, it likely would be an offer that Sharples and the HomeAway board would be hard-pressed to refuse.
Was Sh
