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Technology Stocks : Booking Holdings (formerly Priceline)
BKNG 4,940+0.8%Nov 7 9:30 AM EST

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To: Cardin Drake who wrote (2221)2/5/2000 9:24:00 AM
From: PeterGx  Read Replies (2) of 2743
 
Actually, Priceline's relationship with Webhouse (ea al) is a really smart one. Think of it as buying a call option on a really risky start-up. Why put a lot of money in a really risky proposition when you can bet just a few dollars on the chance of success? Moreover, buying a company outright changes the dynamics of incentives and expertise. I see a lot of this lately. As soon as a bigger company buys a promising start-up things all of a sudden go down the tubes. The original entrepreneurs either cash out or are pushed aside and the once promising company becomes a worthless money pit.
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