Microsoft Acquires Farecast for $115 Million

John Cook is reporting that travel search provider Farecast has been acquired by Microsoft for $115 million. Farecast is a travel prediction engine which attempts to help you find the most ideal time to purchase tickets.

Microsoft says that they will integrate the Farecast techology into MSN Travel. Is that worth $115 million? Cook stated that there were other companies interested in acquiring Farecast -- perhaps it was a defensive move by Microsoft. How do you purchase your travel? I've always used the provider Web site (and occasionally Priceline) as I am a points and awards maximizer.

In what might be the shortest acquisition post ever, CEO Hugh Crean stated, "This acquisition creates tremendous opportunities for the Farecast team and our customers.  We look forward to sharing more details in the weeks to come."

Initial investor Madrona Venture Group noted that the investment returned more than five times the money invested. It was a "very nice financial return for us," Matt McIlwain of Madrona said.

As a side note, our post about Farecast moving into beta in late August 2006 was one of the first pieces of content ever on CN.