The share value of Priceline.com fell by 27% on Thursday morning
trading after the company announced it was taking a charge because
Webhouse, a Priceline.com licensee, is going out of business.
Priceline Webhouse Club, which featured on the Priceline.com
site, let consumers name their own prices for groceries and petrol
on-line, under terms of a licence to use Priceline.com’s business
method patent. The licensee will close within the next 90 days.
Webhouse said it had decided to shut down due to “market
conditions” and because it thought it unlikely that it could raise
the “substantial capital” necessary for it to stick to its business
plan aim for profitability. In a statement, Priceline.com said that
another licensee, Perfect Yardsale, which sold used merchandise,
will also shut down.
