Ralph Bartel has been selling stock for a while now and he now owns less than 50% of the company which I would think open the company up to the potential for being bought out. Consider the valuation of the company:
Price to Free Cash Flow: 11x (industry average is 22)
Price to Earnings: 14x (industry average is 25)
Price to Sales: 2x (industry average is 4.1)
If you look at their market cap vs the traffic they generate:
TRAFFIC (in terms of % of visits to travel sites in entire US):
EXPE - 13.6% ; mkt cap = $8.8 Billion
PCLN - 9.8% ; mkt cap = $35 Billion
KYAK - 5.4% ; mkt cap = $1.6 Billion
TZOO - 2.9%; mkt cap = $325 Million
Why wouldn't someone like the larger players above or YHOO buy them up? It's really low risk (given TZOO's cash flow and net cash balance) and it would allow them to gobble up 3% of the entire market for a fraction of the price their own stocks trade for relative to the traffic they get. Plus they would be able to direct all of the TZOO traffic onto their own booking platforms and get a much better return for their traffic than TZOO is getting.
If TZOO traded at the same valuation as the others above it would be in the $50's.