Orbitz IPO Greeted With A Yawn

from the full-circle dept

Throughout its relatively short history, online travel site Orbitz has undergone quite a number of ownership changes. Last year, Orbitz' parent company was bought out by private equity firm Blackstone, which promptly decided to flip it back to the public markets. When it first filed to go public, there were many who argued that the company looked like a terrible investment for both operational and structural reasons. It looks like the market agrees with that assessment, as the IPO ended up pricing below its expected range. Private equity firms aren't infallible, and sometimes they're bound to buy companies that they can't turn into very much. But as more of these unimpressive offerings come to market, there's going to be increased skepticism over whether these firms can apply their magic touch to the tech industry.

Filed Under: ipos, private equity
Companies: blackstone, orbitz

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  1. identicon
    Lodging, 11 Dec 2007 @ 2:18am

    Orbitz Hotels and Flights

    Commissions are very low on flights, still higher on hotel reservations. These commissions are more or less the same for all re-sellers, in the end re-sellers spend for advertising till they consume nearly all of the commission margin. Guess who is gaining a lot from hotels and flights bookings considering that the commission amount is moving to the advertising side, I would say mainly Google then Yahoo and few dollars to the others. Indeed airlines and hotel chains are advertising directly and have their websites fully converted to e-commerce. For accommodation needs, hotels can be booked directly with many advantages and possibly better discounts.

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