Question of the Day - Get those calculators out
So Travolution had actually planned to have a day off from blogging - deadlines for the June edition of our magazine are approaching and other things going on.
But then someone emailed to ask/poke fun as to why we hadn't covered the recent announcement from Cheapflights regarding its appointment of Long Acre Partners as "strategic advisors".
In short: CF has asked LAP to recommend either an IPO, an influx of PE, or a SP. [see below for the key]
Our apologies. It is easy to be flippant. But, seriously, this is actually a very interesting development.
Enquiries as to a likely price for the business are generally met with a "no comment" (perhaps understandably) from the Cheapflights camp.
So, reader question of the day: Likely market capital value for Cheapflights? [Serious answers please via the comments buttons]
Kevin May, editor, Travolution
IPO = Initial Public Offering. PE = private equity. SP = strategic partnership.
Technorati tags: cheapflights cheap flights company valuation
7 comments:
£200m
Closer to £230 million for me.
You are all overestimating in my opinion. £150m.
Remember that Ebookers went for £200 million; Lastminute.com for £577 million.
The current rush to buy profitable dot-coms makes me think cheapflights would go for closer to £260 million.
Great post and always fun to speculate. however i would argue that we will probably not see a value put to cheapflights and it will be an undiscosed investment from a strategy partner.
for what it's worth, slap £185m down and you'll get the company! :-)
All of these figures seem high imho, based on their turnover and profit margins.
If they are worth this much, it is great news to all of us who run travel websites, but considering the volatility of Google, I think it is one hell of a punt.
http://www.flightblogging.com/2007/05/04/cheap-flights-how-much-are-they-worth/
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