The eLong – Expedia agreement allows Expedia to increase its presence in the Chinese market by amending certain non-competition provisions previously entered into in connection with Expedia's investment in eLong.
BEIJING and BELLEVUE, WASHINGTON – Two leading online travel companies – eLong, Inc. and Expedia, Inc. announced a new agreement that expands global hotel booking options for consumers.
“We believe this new agreement strengthens our relationship with our largest shareholder, and look forward to closer cooperation with Expedia to provide world-class products and services to our customers in support of our online hotel focused strategy. ‘Book Hotel, Use eLong’,” said Guangfu Cui, Chief Executive Officer of eLong.
“We are strong believers in the eLong team and their ability to grow and continue to gain share in China. The Chinese travel market is expected to reach over US$105 billion by 2013 with only about 15% of Chinese consumers transacting online, providing a long runway for growth for eLong and Expedia. We are just getting started,” said Dara Khosrowshahi, President and Chief Executive Officer of Expedia.
The agreement outlines terms for enhanced collaboration between eLong and Expedia, more extensive best practice and knowledge sharing as well as strategic cooperation on potential merger and acquisition activity.
The agreement also allows Expedia to increase its presence in the Chinese market by amending certain non-competition provisions previously entered into in connection with Expedia’s investment in eLong. Under the agreement, Expedia will make an initial payment of $7 million and a subsequent payment to eLong in November 2015 based on a revenue-sharing arrangement between the parties.
The agreement was approved by the Independent Directors of eLong.
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