HomeAway Is Said to Select Banks to Manage $300 Million IPO

HomeAway.com Inc., the vacation- rental website, has selected banks to manage an initial public offering this year of as much as $300 million, three people with knowledge of the plans said.

The banks include Morgan Stanley, Deutsche Bank AG, JPMorgan Chase & Co. and Goldman Sachs Group Inc., said the people, who declined to be named because the talks are private. The share sale is likely to happen by June, two of the people said.

Founded in 2005, HomeAway has gained users and expanded internationally even as vacation-rental rivals such as Airbnb Inc. have emerged. HomeAway is one of many U.S. Internet companies planning to go public, joining online-radio provider Pandora Media Inc., social-networking site LinkedIn Corp. and Web-calling service Skype Technologies SA.

Eileen Buesing, a spokeswoman for Austin, Texas-based HomeAway, declined to comment. Pen Pendleton, a spokesman for Morgan Stanley, declined to comment, as did JPMorgan spokeswoman Tasha Pelio and Goldman Sachs’s Andrea Rachman. Scott Helfman, a spokesman for Deutsche Bank, wasn’t reached for a comment.

HomeAway has raised about $500 million in private capital from Austin Ventures, also based in Austin, and Redpoint Ventures in Menlo Park, California, which first invested in HomeAway in 2005. Redpoint, along with Palo Alto, California- based Technology Crossover Ventures and Institutional Venture Partners, invested $250 million in 2008.

HomeAway has more than 540,000 rental listings in 120 countries, according to its website. Homeowners pay an annual fee of about $300 to list, and the site is free for renters. In addition to HomeAway.com, the company runs Vacation Rentals by Owner, or VRBO.com, and VacationRentals.com.

Last year, HomeAway bought Escapia Inc. and Instant Software Inc., providers of software for vacation rentals, which together represent almost 1,700 property-management customers, HomeAway said in October.

To contact the reporters on this story: Serena Saitto in New York at ssaitto@bloomberg.net; Douglas MacMillan in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Thomas Giles at tgiles5@bloomberg.net

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