Priceline's $2.6 Billion Dinner Tab

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June 13 (Bloomberg) -- Priceline is buying OpenTable in a deal valued at $2.6 billion to add restaurant bookings to its travel business as the industry steps up investments in local listings and mobile services. UReserv CEO Van Garrett and Bloomberg's Paul Sweeney take a look at what the deal signals on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Across 31,000 restaurants.

For what consolidation means for the online reservation industry, we're going to bring in opentable competitor ureserv.

Paul, how did they come up with this valuation?

The good news is that priceline can afford it, it is less than five percent of its market cap.

What it does for priceline is that it opens up a whole new vertical for priceline in terms of online reservations.

It up the restaurant segment for them.

They are already a leading player in the hotels, and rental cars come up with this is a good acquisition.

The market feels positive.

What do you make of this deal?

I think it is something that we felt was going to happen.

We have seen a lot of movement in the reservation space.

Yelp for just -- her p urchased a competitor.

More aggregation sites and more restaurants will be able to be found in more sites.

Explain how you reserve -- ureserv is different from opentable.

The biggest difference is the price.

Opentable charges a hardware fee, a couple hundred dollars a month, plus the reservations fees per diner.

If a person was dining with a couple other people, up to four people can cost from four dollars to seven dollars for that reservation.

We charge a flat fee of six ty dollars a month.

Our technology is open.

If the restaurant was to aggregate reservations from trip advisor, yelp, or anybody else, they can have that in n their dashboard.

We see trying to go through just opentable is a negative.

We need an open platform, and to make it easier.

Talk about this deal from the perspective of the restaurant owner.

What does this do to their margins and the potential for lack of a petition -- competition?

They are looking to drive traffic through their store s. priceline, across all of its business, has been able to drive traffic.

You need to maximize the yield for the restaurant owner or the airline or the hotel, that is in their best interest.

You have about 8 million online subscribers to ureserv?

We have seated that many clients, yes.

Can they make reservations on social media websites such as facebook?

Are you linked with those kinds of lifeforms?


You can make your reservations through the restaurant website or through their facebook or any other channel partners that the restaurant wants to use.

We are restaurant centric, we want to retain the branding of the restaurant and have the restaurant decide where and how much inventory they put out and.

. what about the cost and m maintenance of ureserv?

How do you fund this development?

We have a robust system.

It is all cloud based.

It makes it very easy for restaurant operators to run their platform on smartphones, on tablets, on any type of device as long as you're connected.

You have access to the ureserv platforms.

You are not necessarily going to be served by priceline or opentable.

There are great restaurants that want to be able to reservations that only have 30 seats and they cannot afford that type of platform.

That is where we come in and we offer a fixed price model for them.

Give me about 15 seconds, if this deal goes through, does this mean that is going to have a lock on certain big restaurant chains?

I am not sure if they're going to have a lock, but they're going to be a big player.

I would look for priceline to

This text has been automatically generated. It may not be 100% accurate.


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