Biography Ctrip acquisition of eLong

On July 8, Ctrip eLong merger wave and waves - eLong Holdings Expedia said in a public statement: eLong about the majority of the shares held by the company related rumors are not accurate. Expedia plans to maintain long-term investor status as an eLong and support eLong as China's leading travel website.

In response, one of the industry's deep throat pointed out that Expedia's sudden statement of practice belongs to the Ming path along the cliff, the darkness of the warehouse - its essence is to cover the M & A process, Ctrip can evade the antitrust investigation, which curve acquired Art Long; The case can also get a lot of benefits, that is, Ctrip digest its overseas inventory.

The above sources said: The logic designed by the tripartite mergers and acquisitions is as follows. First, the controlling shareholder Expedia to take the "privatization" approach to delisting eLong - in general, is the controlling shareholder of the minority shareholders in the hands of all the shares bought back to expand the existing share, and eventually make the company delisting .

Then, Ctrip shares through the way to participate in a small stake in shares Expedia. Since then, Ctrip and Expedia sign an agreement to share eLong's revenue. In such a merger and acquisition of design, first through the appropriate legal and financial means eLong can make a small income, and then crossed the antitrust terms, sold to Ctrip.

With Ctrip and the conversion, Expedia's demand for the latter is to allow the Chinese company to digest Expedia's international inventory.

For a long time, as a listed company in the United States, eLong's public disclosure of information to the public ---- Expedia has a 65% stake in eLong and 82.4% of the voting rights, Tencent currently owns 15% of the eLong vote, Ereli network is the second largest shareholder.

Expedia suddenly audible moment, which mystery thought-provoking.