This guy used to be a fucking STARFLEET Captain! [Photo: WJYY)

The release reads:

Priceline.com Incorporated (PCLN) announced today that it has signed a definitive agreement for the Priceline Group to acquire KAYAK in a stock and cash transaction.  Under the terms of the agreement, the transaction values KAYAK at $1.8 billion ($1.65 billion net of cash acquired) or $40 per share of KAYAK (subject to the collar described below), with the Group paying approximately $500 million of the consideration in cash and $1.3 billion in equity and assumed stock options.

The Boards of Directors of the Priceline Group and KAYAK have unanimously approved the transaction, which is subject to customary closing conditions, including a vote of KAYAK’s shareholders and regulatory approvals, and is expected to close by late 1^st quarter 2013.  KAYAK’s current management team will continue to manage KAYAK’s operations independently as part of the Priceline Group of companies.  The Group expects that the impact of the KAYAK acquisition on Non-GAAP EPS in 2013 will be de minimis.

With both companies trading publicly, the announcement came minutes after the markets closed. Priceline's stock closed at $627.87 today after falling 1.06 percent; Kayak fell 1.59 percent to $31.04.

The travel industry as a whole has seen 37 percent growth this year, though much of that occurred in early 2012. In October, Priceline led the charge on a "travel group rebound," surpassing earnings forecasts.

Despite existing within the same industry, the two companies are strange bedfellows when it comes to their business models. Kayak aggregates travel prices from sites across the web to help users find the cheapest airfare and hotel rooms. Priceline, however, is built on an auction strategy, where users offer a bid for flights, hotels or car rentals and are immediately booked for that service if the business accepts their offer. The press release says Kayak will continue to operate independently of Priceline, but wouldn't that mean Kayak could be driving customers to travel sites that are essentially Priceline competitors?

Meanwhile, some New York techies are already suggesting other travel site alternatives.

Look at this freaking guy.

Head for your bunkers: Facebook fallout is upon us. (Maybe.) Bloomberg reports that--according to one source, anyway--Kayak plans to delay its IPO, in the wake of Facebook's less-than-stellar debut. Says Bloomberg:

The Norwalk, Connecticut-based online travel service has postponed the roadshow for the offering, which was scheduled to start last week, said the person, who declined to be identified because the information is private. Morgan Stanley, the lead bank on Facebook’s initial share sale, also was hired to lead Kayak’s IPO.

Facebook's stock is currently at $28.19, well under its $38 debut. Given that it was the highest-profile technology IPO in years (seriously, "frenzy" doesn't even do it justice), there was no way that wasn't going to have some sort of impact. One researcher told Bloomberg: "After Facebook’s tumble, investors are not willing to buy pie in the sky." Ouch. 

Still, two other tech companies with IPOs in the works--ServiceNow and Palo Alto Networks--are said to be on track. So maybe it's just the ultra-high-profile offerings that're affected by this latest disruption. It's also worth noting that Kayak originally filed to go public in November 2010, then delayed due to "market conditions." So it's not like it's been entirely smooth sailing for Kayak thus far.

Meanwhile, Italy hates Zuck for his poor tipping, and everyone thinks he cheaped out on Priscilla's engagement ring. We're almost starting to feel sorry for the poor besieged billionaire.