Southern Metropolitan News, 7/03/14
According to an industry insider, Chinese online travel service provider Ctrip (Nasdaq: CTRP) plans to acquire US online travel site Expedia's ownership stake in rival Chinese travel site eLong (Nasdaq: LONG) through a share swap agreement. The deal values eLong at USD 800 mln to USD 1 bln.
Expedia currently owns 65% of eLong's equity shares, equivalent to an 82.4% voting right. eLong's second largest shareholder, internet firm Tencent (0700.HK), owns a 15% voting right in the company. Ctrip previously participated in Tencent's two investments into Tongcheng Network Technology, operator of online travel website LY.com.