2 Asian Firms Boost Priceline Stake to 30%
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Two Asian conglomerates controlled by Hong Kong’s richest man said they would buy an additional 25 million shares in Priceline.com Inc. in a deal that could help the popular U.S. Internet travel and commerce site expand overseas.
Cheung Kong (Holdings) Ltd. and Hutchison Whampoa Ltd.--multinationals with diverse holdings ranging from hotels to Internet operations--will boost their joint stake in Priceline to 30% with the latest purchase. The shares are being sold by Jay Walker, founder of the popular name-your-own-price service that lets consumers bid on things such as plane tickets and hotel rooms. Walker stepped down as a Priceline board member and vice chairman in December.
Since the stock was purchased in a private deal, it will not boost Priceline’s cash holdings. But a Priceline spokesman said the deal would increase the involvement of two strategic partners “that operate a number of core businesses that are very closely integrated with the core business we’re involved in.”
Hutchison and Cheung Kong first invested in Priceline in February, when they jointly bought a 15% stake in the company. As a result of the new purchase, they will get two seats on the Priceline board.
Shares of Priceline rose 14 cents to $5.45 on Nasdaq.
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