Expedia has increased its stake its Chinese online travel agency eLong to 56% and revealed a partnership with Chinese web and mobile tech firm Tencent Holdings.
Expedia snapped up a further 8% of the outstanding shares in eLong yesterday for $41.2 million while Tencent invested a massive $84.4 million through the purchase of 16% of the company.
Tencent is now the second largest shareholder in eLong.
The investment is the first time Tencent has moved into the travel sector and is positioning itself alongside Expedia has a significant driver to help increase eLong's position in China.
The pair will develop and distribute eLong's hotel stock through Tencent's existing web community of 674 million users in China.
The development is an interesting move for Expedia as it looks to challenge - through eLong - the likes of Ctrip, the dominant player in China.
Throwing eLong products into the Tencent community is, in some respects, the equivalent of a partnership deal with Facebook, in terms of the size of the membership.
Tencent provides instant messaging services, the QQ.com portal and gaming platform, Qzone social network and wireless system.
Expedia has been involved in the Chinese market for around seven years, having taken a 30% stake in eLong through its previous owner IAC in 2004.
TripAdvisor also got involved in the same market in 2009, launchingDaoDao as the local version of the user review site.