OpenTable shares up as Yahoo acquisition rumored
updated 03:41 pm EDT, Mon October 22, 2012
OPEN:US up five percent on Yahoo's interest
Today's rumors that Yahoo is interested in acquiring OpenTable, the largest online restaurant reservation service in the US, caused shares in the service to jump the most they have in more than two months. As of 3:30 p.m. EST, OPEN:US shares were up 5.44 percent to $45.96 per share. Through October 19, OpenTable shares had risen 11 percent for the year.
As Bloomberg details, rumors that Yahoo was interested in acquiring OpenTable started yesterday with a Reuters report that Yahoo CEO Marissa Mayer had "appeared to show interest" in OpenTable as a potential target for acquisition. Reuters cited an unnamed source said to be familiar with the matter, and neither Yahoo nor OpenTable have commented on the matter.
OpenTable currently holds an enterprise value of about $947 million. That total is about half what it was last year. At the end of the second quarter, Yahoo had about $1.9 billion in cash and short term investments, though that figure is thought to have grown by at least $650 billion in the past quarter following the closure of a deal in which the company sold back a stake in Chinese e-retailer Alibaba.
