Ctrip is overseeing the merging of two Chinese online travel brands - one of which it bought from Expedia Inc two years ago.
eLong and Tongcheng Network will become a new entity (Toncheng-Elong), with Ctrip and Tencent becoming the major strategic shareholders of the business.
Both will continue as individual brands - Tongcheng using the LY name - and also support their services through the popular Weixin and Mobile QQ wallet platforms.
Hotel booking provider eLong has worked with travel generalist Tongcheng for a number of years, first inking a partnership in 2014 to supply one another with inventory.
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Expedia Inc offloaded its majority stake in eLong in 2015, making $671 million in the process.
The buyers, Ctrip and Tencent, were joined by a number of investment vehicles in China, although Ctrip took on a $400 million share of the deal.
Tencent had been part of the original consortium that invested in eLong, whilst Ctrip had been a minority investor in Tongcheng since 2014.
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Ctrip's co-founder and executive chairman, James Liang, will become co-chairman of Tongcheng-Elong with Tongcheng CEO and chairman, Zhixiang Wu.
A statement from Ctrip says: "The merger of eLong and Tongcheng Network will enable the new company to provide wider traveler coverage and deliver greater online travel services and products while benefiting from significant traffic via Tencent's Weixin and Mobile QQ platforms.
"Ctrip will continue to cooperate with Tongcheng-Elong to promote better travel experiences and to build a healthy ecosystem in the China online travel market."