Lehman Brothers Financial SA (LEHNQ)

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🚫 Kayak on the Congo River:

The deal included a provision that if Tenaya Capital reached certain performance milestones, Lehman would receive a percentage of the profits. However, this was a performance-based payment, not an ongoing ownership interest.

AI Overview



Kayak's IPO produced a good return because its share price surged on its first day of trading, and the company was then acquired by Priceline for a significant premium. The IPO, which happened in July 2012, was successful after being delayed for a year due to poor market conditions, like the struggling Facebook IPO. The subsequent acquisition by Priceline in November 2012 for $1.8 billion validated the IPO's success and provided a lucrative exit for its investors.
Strong IPO performance: After finally going public, Kayak's stock price soared, indicating strong investor confidence and demand for the company.
Facebook IPO context: The company had delayed its IPO, partly due to the disastrous performance of Facebook's own initial public offering. Kayak's successful debut was seen as a positive sign for the market and a redemption for the lead underwriter, Morgan Stanley.
Successful acquisition: Shortly after the IPO, Priceline announced its acquisition of Kayak for $1.8 billion, which valued the company at $40 per share.
Positive return for investors: The acquisition price was significantly higher than the IPO price, creating a substantial return on investment for the venture capital firms that had backed Kayak.