Kayak Updates IPO Filing to Acknowledge Google’s Entry Into Travel

Kayak has updated its IPO filing to disclose that Google has entered the travel search market.

The Internet giant’s entry, which could become a formidable force in the industry, was entirely expected after its $700 million acquisition of ITA Software closed in April. (As evidenced by today’s Senate subcommittee hearing, Google’s clout across various businesses is a hot topic right now).

Last week, Google unveiled its very first steps into the space, which include flight results from general search inquiries.

From Kayak’s amended S-1:

“Google’s flight search offering appears to include significantly increased speed on return of search results and, in the future, may include other enhancements or improvements in performance of the ITA software which may not be made available to us.”

Separately, Kayak disclosed two figures that reveal just how important Google is as a partner.

In the first six months ended June 30, 6.5 percent of its total revenues came from Google and 5 percent of its user queries resulted from searches entered on general search engine Web sites, like Google.

Whether Google’s entry into the market will affect Kayak’s ability to go public is unclear. However, the Norwalk, Conn.-based company, has already lowered the likelihood of an IPO since filing 11 months ago.

Kayak calculated the “various uncertainties” surrounding its IPO as part of determining the worth of its stock grants. As of April, it reported that the likelihood of its IPO decreased to 50 percent. Meanwhile, the chances of a strategic sale or remaining as a private company increased to 20 percent and 30 percent, respectively.


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