Microsoft buys Farecast for $115 million

Microsoft has purchased Farecast, a travel pricing/comparison/booking service that competes with similar web services like Travelocity, Orbitz, and Kayak. What sets Farecast apart from other services is the site's focus on predictions. Based on trends over time, Farecast can help users predict whether prices will go up or down in the future.

The Seattle Post Intelligencer says Microsoft paid $115 million for the company. In a blog post, Farecast says very little about the acquisition other than that it "created tremendous opportunities." Farecast is already prominently featured on Microsoft's MSN Travel site. It's not clear if and how Microsoft will utilize Farecast and its technology beyond the travel site.

[via Profy]

Tags: acquisition, farecast, travel