Google acquires ITA Software

Larry Page, I think.

I'm pretty sure Mr. Norvig will have a thing or two to say about this :-)

Herez my post on why google needed to buy ITA. http://bit.ly/h07ked

So, I have an interesting perspective to share. I'm graduating and might end up working for Kayak. I know at least part of their infrastructure depends on ITA, and while the existing contract goes until 2013 (I think), Google is obviously looking to compete. Kayak also recently filed for IPO.

It's not like Google has never failed at any of its ventures, but to me it seems like it might be a tough competitor to everyone in this field, since a decent amount of traffic does come through search results. On the other hand, I think a majority of users come in directly, either through WOM or advertising or previous use.

So, what is HN's thoughts on the situation for Kayak? Would it be a wrong move to accept a job there? The engineers seem smart, the work is interesting, the culture is sane and easygoing. What's the worst that could happen?

It shows Google wants to be in this space and is willing to buy into it. I don't know that Google will specifically go for Hipmunk, but when any major corporation starts buying into a market, they tend to make more than one acquisition, and it's often the partners of the big companies they acquire first. I'm pretty certain they'll make a couple more strategic acquisitions in the airline/travel space, and Hipmunk is one of the more interesting partners of ITA, since they're new enough to probably be cheap (single or double digit millions, if Steve were looking to be acquired), and all the original team is still in place, no one has cashed out. Hipmunk is also one of the most interesting teams in the space.

Further, if I were doing a talent acquisition, I can't think of many people I'd want more than the reddit team, and Hipmunk is currently pretty much made up of the early reddit team. Of course, Steve is already rich (by some definition of rich), so probably isn't desperate to sell for merely "talent acquisition" money, but Google can afford to stretch the meaning of talent acquisition, and have done so in the past to get really interesting people.

Also, saying "all they need is a GUI" is vastly underrating the importance of the GUI. I can imagine an Android app with a Hipmunk style UI being really powerful. Sometimes you want to find the perfect balance of price and schedule, and sometimes you want to do that while in the middle of a meeting or in the cab on your way to your hotel so you know when you're flying again, or whatever.

And, to get specific about YC-related acquisitions, Google docs had a spreadsheet when they acquired Zenter. All they needed was a GUI, but they acquired a two-man company that had a few tens of thousands of lines of code. Probably a talent acquisition (and a smart one, since Robby and Wayne are awesome), but nonetheless, an acquisition.

Anyway, I agree that Google will definitely be building this into the search user interface. But, when Google moves into an area they don't just do the search interface. Maps has loads of entry-points into it, including non-search oriented use cases, and Google made several acquisitions and developed a bunch of stuff internally to make Maps happen.