Expedia goes further into China with greater stake in eLong

November 21, 2011 By Leave a Comment

Expedia has acquired a further 8% in China-based online travel agency eLong for US$72.4 million.

The US giant, which purchased the 8% from social networking company Renren, adds to its 55% existing stake in eLong.

Earlier this year Expedia also acquired 8% of eLong for US$41.2m while China-based internet company Tencent acquired 16% of the company.

Both acquisitions are evidence of Expedia’s desire to expand in China as well as its strategy to go down the transactional route as it prepares to spin off Tripadvisor as a public company before the end of the year.

Last week eLong announced a 19% increase in net revenue to US$25.8m for the 3rd quarter of 2011 compared to the same quarter last year while net income increased to US$1.5m compared to US$0.2m year-on-year.

Room nights increased 42% to 2.7m for the quarter over the same period in 2010.

Related posts:

  1. Expedia increases its stake in China online travel agency eLong
  2. Ctrip.com: China, Greater China, Greater Asia, then global
  3. eLong, Ctrip battle for China online travel consumers
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Linda Fox About Linda Fox

Linda Fox is a reporter for Tnooz. For the past six years she has worked as a freelance journalist across a range of B2B titles including Travolution, ABTA Magazine, Travelmole and the Business Travel Magazine.

In this time she has also undertaken corporate projects for a number of high profile travel technology, travel management and research companies.

Prior to her freelance career she covered hotels and technology news for Travel Trade Gazette for seven years. Linda joined TTG from Caterer & Hotelkeeper where she worked on the features desk for more than five years.

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