Tencent technology Fan Xiaodong reported on May 12th
Ctrip and where to negotiate the merger has recently been deadlocked. News from the investment circle, said Ctrip has tried another industry consolidation path, after the strategic investment with the way network, eLong has entered the list of Ctrip investment.
no one doubts, Ctrip and where to join forces will rule China’s online travel market, but for various reasons lead to the difficulty of cooperation between the two sides. Cause: the negotiations ran aground due to the control of the management team for the two; there is a big difference in the rate of economic growth, layout, business models and other aspects of the development direction, it is difficult to find both the transaction price and the solutions are acceptable; in addition, the two once merged, how to achieve complementary business, play integration effect is the problem.
is not the exact message that Ctrip and elong the degree of progress of the negotiations, but analysts said the same way and Ctrip, eLong occupy about 70% of the market share Chinese OTA (behind elong same way and have the common shareholders of Tencent), the three together is also on the pattern of subversion. Where will be in a passive way have enemies in front and rear.
elong has the motivation to find cooperation. Involved in a price war, and marketing, eLong 2013 turnover exceeded 10 billion yuan for the first time, commission income exceeded 1 billion yuan, but the loss of up to 167 million yuan, while the fourth quarter growth rate of the hotel, hotel room nights the turnover rate is also in decline.
as a major shareholder of elong, foreign online travel giant Expedia also need to re-examine their layout in the Chinese market. In addition to investment in elong, 2009 Expedia in China launched a travel review site to the network, in October of that year, with more than $12 million acquisition of travel search site, but they can not guarantee Expedia can occupy a space for one person in the future China market.
Expedia elong stake of about 65%. By the end of last week, eLong market capitalization of $483 million, Expedia in 2011 from the company’s share repurchase elong, eLong market capitalization of nearly $800 million.
although investment in elong is not obvious, but the Expedia Chinese coveted market, and not easy to exit. If Expedia eventually reached an investment agreement with Ctrip, the two sides in the overseas leisure vacation, outbound travel market will have a larger space for cooperation.
Expedia is the current market value of $8 billion 900 million, the main business is online travel booking, by "agent + wholesalers" mode to sell tourism products suppliers and get a commission, and the current market value of $6 billion 700 million Ctrip similar, in addition, Expedia also owns many subsidiaries, including the current market value of $12 billion, the world’s largest tourism the European Community TripAdvisor, such as the Hotel Current search site Tr>