Out-Law / Your Daily Need-To-Know

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.

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