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Technology Stocks : Booking Holdings (formerly Priceline)
BKNG 5,050-0.5%Nov 14 9:30 AM EST
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To: tuck who wrote (2427)10/5/2000 7:13:45 PM
From: Ben Wa  Read Replies (2) of 2743
 
The following astute analysis brought to you by Robertson Stephens - from 9/99.

· Priceline announced the formation of an affiliated company that will be the first licensee of its patented, name-your-price business method.
· The new company is a privately held startup to be called Priceline.com WebHouse Club, Inc. The affiliated company is being funded by Walker Digital, Paul Allen's
Vulcan Ventures, and Goldman Sachs.
· While Priceline is not funding the costs associated with launching and operating this business, Priceline has the right to purchase warrants representing a majority stake
in the company.
· Initially launching in the New York City metro area on November 1st, consumers can name their own price on up to 60 frequently purchased items and receive coupons for
the products redeemable at participating local grocery stores.
· Through additional licensing, we believe Priceline can enter new markets more quickely than on its own. We believe the Priceline brand, coupled with first mover
advantages and strong licensees, could create significant barriers to entry for eTailers with similar service offerings.
· We believe this announcement is indicative of the extendibility of Priceline's patented business model into non-travel markets.
· We expect this new venture to drive traffic to the Priceline site and increase the rate of customer visits. We expect the stock will react favorably to this unique corporate
structure which allows Priceline to benefit from WebHouse Club's branding initiatives without depleting Priceline's resources.
· While we are maintaining our current estimates given the early stages of Priceline's licensing program, we look for early reads of strong business momentum as an
opportunity to upwardly revise our estimates.
· We reiterate our Strong Buy rating.
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