US-based search engine Google is set to be one of the beneficiaries of the forthcoming float of US-based on-line holiday site HomeAway, as it has set a maximum valuation more than 50% higher than the price at which Google reportedly invested.
The initial public offering [IPO] of HomeAway is targeting a range between $24 per share and $27 per share giving the company a market capitalisation of under $2.2bn at the top end.
News provider Tech Crunch said last year Google invested in Homeaway, which uses characters from National Lampoon films, at an about $1.4bn valuation to take a circa $25m stake. Tech Crunch said Google had not invested money in the company, but it instead bought the shares from another backer. Unlike other backers, US-based venture capital firms Austin Ventures, Redpoint Ventures, Technology Crossover Ventures, Institutional Venture Partners and Trident Capital, Google owns less than 5% of the company.
The company’s regulatory filings said $11.25m of equity was sold in October and March and in total the company has raised $504m since launch.