Save priceline.com and Win!
October 17, 2000
Priceline.com (Nasdaq: PCLN), the online company famous for name-your-own-price groceries, gas, airfare, hotels, and more has turned into an investing disaster. The company, worth as much as $17.3 billion back in March is now dangerously close to penny stock status, recently selling at $5.15 per share with a market cap of $896 million.
The company's recent slide began in late September when the Wall Street Journal published some less-than-flattering details of an upcoming 48 Hours expose and continued after the show actually aired. An earnings warning followed within the next week. Could it possibly get any worse? You bet! On October 5, priceline announced that it would no longer offer gas and groceries because its provider WebHouse Club was discontinuing the services. Priceline took another hit.
Can priceline.com survive? How will it happen? That's where you come in.
Appoint yourself as the new CEO of priceline.com and then tell us how you'd save the company. Post your response on the Save Priceline Discussion Board. We'll judge the posts on content, originality, humor, and overall Foolishness. The top prize is a $250 Amazon.com gift certificate and a selection of Golden Throats CDs, featuring priceline.com spokesperson William Shatner and fellow Trekkie Leonard Nimoy "singing" their favorite tunes. Visit our Rules Page for a complete list of rules and prizes.
Before you tell us how you're going to save the company, a few Fools have already come up with some ideas of their own...
"First -- and this is obvious -- I'd fire that bum Shatner and start running a real business instead of a hyped-up, share-price-obsessed, late-night-TV-running-joke circus. I'd focus on expanding my solid consumer base in the travel market into other areas. And I'd be content to grow steadily if more slowly."
-- Brian Lund, writer/analyst
"I would replace William Shatner with Wayne Newton as spokesperson because he sings better."
-- John Del Vecchio, writer/analyst
"I'd have Jay Walker try to 'patent' some positive cash flow..."
-- Brian Bauer, Managing Editor
"I would consider taking the name-your-own-price business model to the Middle East, where it's been used for eons in suqs (public markets). Many new e-commerce operations could be launched there, such as PricelineCamels.com, Priceline-e-Carpets, and PricelineCGO (coffee, gold and oil). Or not."
-- Selena Maranjian, writer
"I'd like to see priceline downplay the 'name your own price' reverse auction conundrum (yes, I know that's a huge change) and openly list the lowest prices at which vendors will sell inventory. That would put the customer in the position of power. Under the current format, priceline actually lets customers pay more than they need to when they bid higher than necessary. Instead, make the prices transparent (removing a lot of complication for customers), and win the volume war with its strong brand name." -- Jeff Fischer, writer/analyst
"I would try to salvage what I could, and put the priceline.com brand name and Capt. Kirk's contract up for auction on eBay. It would be big. Really big. Unless of course it wasn't."
-- Nico Detourn, writer/analyst
That's a great start, but now it's your turn. How will you, the new CEO, save priceline?
What happened? Follow the trail...
Priceline.com: Kicked While Down (10/5/00)
Priceline's Self-Inflicted Wounds (9/29/00)
Priceline as Rule Breaker (9/26/00)
Priceline's 48 Hours (9/22/00)
Priceline.com: Name Your Own Earnings (7/25/00)
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