eLong has finally accepted a takeover offer from a group of investors including rival Ctrip and Chinese internet powerhouse Tencent, six months after the consortium made its move.
Today's confirmation names China E-Dragon Holdings as the corporate vehicle which now owns eLong. As well as Ctrip and Tencent, investment firms Ocean Imagination and Seagull Holdings are part of the new owners, as well as some of eLong's existing management.
Before the offer was made last August, Ctrip already owned 37.6% of eLong, having been involved in the $671 million buyout of Expedia's stake in the mobile and accommodation focussed business. Tencent also had a 15% share of the voting rights.
The breakdown of ownership stakes under the new structure is not immediately clear from today's announcement.
Since the offer was made, Ctrip has taken a 45% stake in Qunar as part of a share swap with Baidu, another of the Chinese internet powerhouses, a big rival of Tencent and owner of a 25% stake in Ctrip.
While it is not unusual for Baidu, Tencent (and China's other internet giant Alibaba) to have joint investments in businesses which are competitive, the travel scenario is arguably more complicated than other verticals. It'll be interested to see where eLong is positioned in the Chinese online travel market in light of its new ownership structure.
Meanwhile Ctrip, with its investment in MakeMyTrip, among others, looks as if it could soon be staking a claim to be the world's biggest online travel company.
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