Ctrip $400 million acquisition of 37.6% shares of elong elong became the largest single shareholder

Ctrip

$400 million acquisition of 37.6% shares of elong elong as the single largest shareholder of

Tencent science and technology news (Fan Xiaodong) May 22nd news, Expedia today announced that Ctrip has $400 million acquisition of its holdings elong shares of 37.6%, becoming the largest single shareholder elong.

as early as last May, there will be Ctrip acquired elong rumors, which, in July last year, Expedia had denied. Expedia is the main business of online travel booking, by "agent + wholesalers" mode to sell tourism products suppliers and get a commission, and Ctrip similar, in addition, Expedia also owns many subsidiaries, including the current market value of $15 billion 300 million, the world’s largest tourism community TripAdvisor, with other European acquisition price of $632 million. Hotel Current search website Trivago.

in early May of this year, there are rumors that the two giants of the online travel industry where and Ctrip merger brewing, the transaction is nearing completion, but an unnamed senior internal to the Tencent where technology revealed that the rumor is false news.

in fact, as early as the beginning of last year, there are rumors that Baidu proposed holding Ctrip, and where to go with the banner of network integration program. But Baidu holding Ctrip has two problems: the first is the United States listed Ctrip stake is dispersed, and the acquisition of Ctrip price is too high; the second is the integration of Ctrip where to go and there are many challenges, the online travel market prospects have a brilliant future, Ctrip management team to exit, where executives do not accept the plan into ctrip.

no doubt, Ctrip and where to go together will establish Chinese online travel market dominance, but a variety of reasons that led to negotiations between the two sides eventually ran aground, including: management team competition for control of the two; there were significant differences in the business model, growth speed, layout and development direction and other aspects, it is difficult to find the two sides the transaction price and the solutions are acceptable; in addition, the two once merged, how to achieve complementary business, play integration effect is a problem.

as of yesterday’s close, Expedia market capitalization of $12 billion 181 million, Ctrip market capitalization of $10 billion 225 million, after which elong shares have soared for 3 consecutive days, as of May 21st market capitalization of $712 million. Prior to the transaction, Expedia holds a 63.7% stake in elong, Tencent holds a stake in elong’s $15.4%.