$2.6 Billion: Priceline Buys OpenTable

Does Wall Street have any "reservations" about the deal?
4:16 | 06/13/14

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Transcript for $2.6 Billion: Priceline Buys OpenTable
Yeah. It is Friday June 13 the markets are -- New York today's big number two point six billion dollars. That is how much money Priceline stating it William Shatner into the restaurant reservation business. Everyone I'm -- -- -- in New York Chicago explain it all means written -- with Yahoo! finance joining us on this Friday the thirteenth Rick avoid all open. What is it a latter's open latter black caps right today. I -- Saudia not the -- -- first let's get upon right out there it is Wall -- -- any reservations. About this deal or is it well done. I will find out as the as the stock of these two companies trades in the -- market today but at the Wall Street fees it seems to like this deal honestly which is a bit surprising because. Priceline is paying a huge premium over open tables stock price as of yesterday to get this company. Something they're paying something like a 40% premium over the stock price so this company Opentable which makes. You know they allow you to make restaurant reservations pretty simple. So that stock price has shot up today. And usually deal like the issue she acquiring company. That stock price usually goes down. And -- what you it would not have been surprising to see Priceline stock go down because they're paying such a premium. But they're paying cash it's not a stock deal and Priceline seems to be about steady today -- might open a little bit down not very much. Basically I think that's telling you that Wall Street like this deal Rick let me ask you this so is Wall Street -- asking the fact. It's two point six billion dollars. -- for a company that has been doing -- making reservations. I you know I think that's actually party appealed and because we're not talking about. You know a company that has a lot of real estate for instance it doesn't have physical assets. And that's a good thing these days because that because you can increase sales without a lot of additional investment as long as you can bring in more restaurants. -- get more consumers to use -- -- I think that's the logic here. And Priceline is saying look. We already do this kind of thing for airlines and hotels basically what they do is -- sort of sweep up excess inventory and help consumers find that inventory. With regard airline flights and hotel reservations often at a discount. And they're saying you know what Opentable does a similar basically they're going around looking for open restaurant reservations stable book your table where -- table is available. And so blending these two business models seems to be logical I think that's the sort of logic of this deal. Well and that's exactly what the CEO said in this summary basically saying the kind of work we do is very similar it's just a different marketplace. Seems pretty logical right there are pretty the other question is out -- -- -- can expect to book or -- -- reservation with William -- -- on. Well maybe you don't need bill -- help on this. But if you think one way to think about putting these two things together is Opentable has about fifteen million users -- -- -- actually called as -- customers because you know it's not like a service you pay for and when you sign up. But those are people to Priceline might you know they -- hopefully did the research and said. You know we think that many of those people don't use Priceline so maybe price maybe will be getting new customers for our. Its core business at the same time we're expanding into this other business that we think is a growing field. And by the -- -- one interesting thing is because of this purchase of Opentable. The shares of other companies should do something similar such as. -- hub which you which allowed you don't make -- order order food through through the lab. And -- Groupon even and a couple others like that Yelp the the local review service these stocks. Are up -- the order of 10% close to double digits because it's a -- it makes it seem as if they're suddenly an appetite for buying these types of stocks of these companies have sort of been out there for awhile. And I guess -- you know potential purchasers for have been circling but now one has actually. Gobbled up target here and that's -- -- is giving the idea that there can be more of these types of deals -- It is an interesting change indeed Rick they were from Yahoo! finance Rick Newman live long prosper and order the chicken pad -- apparently -- -- -- installation -- -- exactly -- -- What did you have latest headlines were here at abcnews.com. -- watching the big number I'm -- -- anymore.

This transcript has been automatically generated and may not be 100% accurate.

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