November 19, 2012

Priceline’s purchase of Kayak will make it less dependent on Google

As Google is “rearranging” where traffic flows, providing more space for its own Google products to the detriment of others, Priceline sees its Kayak acquisition to reduce dependence on Google.

Priceline’s pending $1.8 billion acquisition of Kayak amounts, in part, to some Google insurance for Priceline.

Priceline is one of Google’s largest search engine marketing customers, and Priceline CEO Jeffery Boyd, speaking at the PhoCusWright conference November 15, stated the obvious when he pointed out that Google is a “very important” channel to the online travel agency.

In fact, Priceline shelled out $375.2 million for online advertising in the third quarter, and another $52.9 million for sales and marketing.

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