Where's ctrip going to merge near the end

Absrtact: Bat's contention in China's Internet market continues. Recently, the source said, Baidu Holdings Ctrip is nearing the end of the transaction, after the merger Ctrip will and where to merge. This is another consolidated list of more than 10 billion dollars. As of April 10, Ctrip

BAT's contention in the Chinese internet market continues. Recently, the source said, Baidu Holdings Ctrip is nearing the end of the transaction, after the merger Ctrip will and where to merge.

This is another consolidated list of more than 10 billion dollars. As of April 10, Ctrip market value of 7.228 billion U.S. dollars, to where the market value of about 3.486 billion U.S. dollars, the total market value of nearly 11 billion U.S. dollars.

There have been rumors of where and Ctrip after the merger, the new entity will implement a dual-brand model, Liang Jianzhang and Zhungchengsu will both serve as joint CEO. April 10, a source to the 21st century Economic report reporter revealed that the new to carry the group will be ZHUNGCHENGSU as CEO, rather than the implementation of the joint CEO.

The source told the 21st century Economic report that, because of Ctrip to where competitors under pressure to slow down, its income is expected to fall to second in 2016, Ctrip's large institutional shareholders more want to integrate online tourism industry, to improve the profitability of Ctrip.

In addition, the majority of Ctrip's institutional shareholders are where to go, the source said, the two merger of the concept of "early generation", but until recently to get the decision to pass.

The change of the online tourism pattern

Trying to buy Ctrip company more than Baidu, there have been rumors that Alibaba intends to invest in Ctrip.

Baidu shares means that Ctrip gave up the road of independent development: Prior to Ctrip's competitors have chosen to marry the internet giants, where to accept the investment of Baidu, 2011 Tencent Capital Holdings Art Dragon 16%. February 17 this year, the same way network CEO Wu Zhixiang in the company's internal mail confirmed that the same network has been Tencent, Boyu, Yuan wo three institutions a total of 500 million yuan investment, the future goal is still an independent IPO.

Liang Jianzhang After the return of the internal emphasis on Ctrip independent development, to do the tab outside the fourth giant.

Baidu shares Ctrip, the pattern of online tourism will change: before where to go, Ctrip and other online travel service providers of the war between the future will become Baidu, Tencent, Ali Group of three companies in the war between.

Ali Group Taobao Tourism has been the most important online tourism market power. As early as May 2010 on the launch of the Taobao travel platform, January 2013, Ali Group integration of its tourism business set up Aviation Brigade Division; May announced strategic investment travel records and share applications "on the road"; July a Amoy network to enter the tourism vertical search field; Ali Group announced a stake in Chinese tourism information and online value-added service providers poor travel network. There is news that Alibaba will invest 15 million of billions of dollars in strategic investment in the Bai-Cheng Travel network.

2013 Ctrip travel business transaction size of about 10 billion yuan, the organization of tourism more than 3 million. From the current point of view, the online travel booking market presents Ctrip, where to go to the competition between the two, the user share of both 2013 reached 33.9%, 22.1% respectively. Taobao travel in the second camp.

Baidu shares Ctrip, will take the holding of where business and Ctrip business merger. A temporary result is that Baidu will lead the competition in the online arena in three bat companies.

21st century Economic report reporter learned where to go Ctrip's merger negotiations for a long history. They were 2011, 2013 and 2014. Over the past three years, Ctrip and where to go this extinction, the situation has changed a lot.

2011, the market value of Ctrip is 10 times times, the former is 7 billion U.S. dollars, the latter won the investment holding Baidu, the value of more than 700 million U.S. dollars; in early 2013, Ctrip and where the market gap was reduced to 4:1, the former is 6.8 billion U.S. dollars, the latter listed IPO valuation of 1.7 billion U.S. dollars; by April 2014 , Ctrip and go where the market capitalisation is further down, for 2:1, Ctrip about 7.2 billion dollars, where to go about 3.5 billion dollars.

Yanping, an Internet expert, believes that by 2016, the market value of Ctrip will be less than where to go.

"Grab a seat" wrestling

This integration will trigger the "grab seat" war: Where to go CEO Zhungchengsu and Ctrip CEO Liang Jianzhang, who will be the new company (where the net plus Ctrip, hereinafter referred to as the group) CEO.

Yanping, the Internet expert and founder of Dcci Internet Data Center, believes that young teams are clearly more favored by investors in terms of energy and the acceptance of new things on the internet. At present, Zhungchengsu than other online travel industry CEO's age is small, this is the absolute advantage. Once go to where Ctrip implementation of the merger, whenever Zhungchengsu to carry out the actual operation of the disk is more likely.

Zhungchengsu finally won, not only the age advantage, there are other reasons, mainly two points:

One is compared with Liang Jianzhang, Zhungchengsu in the company's higher shareholding, the current ZHUNGCHENGSU shareholding to where 7.23%, in addition, Baidu shareholding to where 62%, other institutional shareholders including Jinsha venture, Lehman Brothers, Mayfield, GGV Capital and other companies.

Liang Jianzhang in Ctrip's shareholding ratio is 1.6%, lower than Ctrip's CFO Sun 2.2%, as well as the predecessor Ctrip CEO Fan 2.9%. Liang Jianzhang's holdings were even less than those of Ctrip's local subsidiaries. Ctrip's institutional shareholders, including the Oppenheimer Fund, hold 4.63 million shares of 13.72%,t. Rowe Price holds 4.4 million shares of 13.13%,baillie Gifford holding 1.82 million shares of 5.41%.

The second reason is where to go to represent the parity search pattern is more representative of the future. Zhungchengsu previously accepted the 21st century Economic Report reporter interview, where to go is kayak+tripadvior+priceline and other companies in China version, which Kayak's main business is tourism search business, Tripadvior's main business is hotel reviews, Priceline is the OTA business, where it is most similar to the kayak model.

Ctrip mode is called "Mouse + Cement": As of last year, Ctrip nearly half of the orders from the call center. And the early development of Ctrip, most of the business is from the call center mode. At present, Ctrip is located in Nantong, Jiangsu Province, the call center seat is still more than 10,000.