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Expedia Dumps Majority Stake In eLong

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Expedia Inc (NASDAQ: EXPE) sold its entire 62.4 percent stake in the loosing Chinese hotel reservations company eLong, Inc. (ADR) (NASDAQ: LONG) for $671 million, the company said Friday.

Expedia rose more than 5 percent to $111.47; eLong gained about 9 percent to $22.50 in active trading recently.

Elong's recent quarterly revenue fell 17 percent to $33.6 million, while its operating loss widened to $40.1 million, from $7.9 million a year earlier.

Chinese travel service provider Ctrip.com International Ltd. (NASDAQ: CTRP) acquired a 37.6 percent stake in eLong for $400 million in the deal, which closed Friday.

Ctrip shares rose more than 16 percent to $84 recently.

Other purchasers of Expedia's stake, all based in China, included Keystone Lodging Holdings Ltd., Plateno Group Ltd, and Luxuriant Holdings Ltd., Expedia said.

Ctrip, with a market capitalization of $11.63 billion, is an online consolidator of hotel rooms and transportation tickets in China.

ELong offers online hotel reservations to travelers in China and has a market capitalization of about $757.4 million.

Ctrip and Expedia agreed to cooperate to allow their respective customers to benefit from certain travel product offerings for specified geographic markets.

Posted-In: News Asset Sales

 

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